It is tax time again. Below is more information on when to expect to see tax forms from custodians.
2020 Tax Form Availability Dates
All dates are based on the 2021 calendar year—some dates may vary and are subject to change.
February 26 -
January 31 -
January 14 -
February 15 -
February 19 through
1Mailing date could be March 15 for accounts with pending income information for mutual funds or hold REMICs, WHFIT, and some UITs securities.
Common tax questions
Why are some 1099s sent in late January/early February and others sent in mid-to-late February?
Each custodian determines the timing they send 1099s and revisions are common as new information is received from certain mutual fund issuers; a client who receives a 1099 in January might receive a revised 1099 a few weeks—or months—later.
Late reporting that generally results in a revised 1099 usually includes the reclassification of Ordinary Dividends to Return of Capital (non-dividend distributions), other dividend classifications, and/or Foreign Tax Paid on a fund's foreign source of income.
What can I do to avoid revised returns?
Tax preparers usually advise that clients wait until mid-March or early April to prepare tax returns to reduce unplanned revisions. It's also recommended that clients choose paperless delivery on tax documents where applicable, so they have easy 24/7 access to the most up-to-date documents and don't have to store and secure paper documents or wait around for the mail.
2021 Contribution Limit for Retirement Accounts
The basic salary deferral amount for 401(k) and similar workplace plans is $19,500, with a $6,500 catch-up amount for those 50 or older.
In 2021, the overall limit for these plans goes up from $57,000 to $58,000 to help workers whose employers allow special after-tax salary deferrals, and those who are self-employed save to the limit in solo or individual 401(k)s or SEP retirement plans.
The contribution limit for an Individual Retirement Account (IRA) is $6,000, with a $1,000 catch-up limit for those 50 or older.
Clients who choose to rollover an IRA are limited to one rollover in any 12-month period, regardless of the number of IRAs the client owns. The rule does not apply to direct transfers between IRAs, direct rollovers from employer plans, or conversions to a Roth IRA.