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IRA Tax Documents 1099 INT Form

Video Highlights

[0:10] Last week, we found out how you can get a free contribution from the IRS with an IRA tax refund!

[0:38] You have until your IRA tax filing deadline on April 15th to make a contribution!

[0:51] Here are lots of situations in which you should have a 1099 INT filled out.

[1:37] If you’re under 59 ½ and you don’t meet the exemptions, watch out for a penalty!

[2:01] These are a few other ways in which you’ll need to fill out a 1099 INT from IRS.

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IRA Tax Documents 1099 INT Form

We’re still preparing for taxes in this series.

A Reminder about IRA Contributions

Last week we discussed making contributions to your self directed IRA. Remember, you can still make contributions to your IRA until April 15th of this year. It is better to get them sent to your custodian sooner rather than later.

What documents do you need to file your taxes for your IRA?

This week, we are discussing what you need to file your income tax. If you took a distribution last year, whether it’s RMD, an early distribution, or part of your retirement income, you should have received a 1099-INT from Sunwest Trust.

What is a 1099-INT?

This document tells you the exact amount that was withdrawn from your IRA. You should take this document, along with your other tax documents, to your CPA or tax professional so they can include that in your gross income figure.

If you are under 59 ½ and took a distribution without specified exemptions, you may also be subject to an early withdrawal penalty as well.

Penalty Exemptions include:

  • Taking a Required Minimum Distribution (RMD) if you’re 70 ½ years or older
  • Taking a distribution as part of your retirement income if you’re 59 ½ years or older

 Next week, we’ll talk about form 5498. There are a few changes on the form that we’ll discuss at length next week.

Video Transcription

We’re continuing our series on getting ready for that fateful day, April 15th. It’s going to be here before you know it.

Last week, we talked about contributing, making your contribution to your self-directed IRA, and the fact that depending on what tax bracket you’re in, the IRS will help you to make that contribution by increasing the amount of your refund (hopefully).

Be sure to talk to your tax professional about that. Do that pretty soon, so that you don’t end up getting closer to April 15th and then being pushed for time to get that contribution in. You have until April 15th of this year to make your contribution for the previous year. Remember to keep that in mind.

Today, I wanted to just talk to you about what you’ll need to actually file your income tax.

If you took a distribution during 2014, whether it was an RMD because you’re over 70 ½ or if you just took money out as part of your retirement income or if you took money out early before you turn 59 ½; in any of those instances, you should have gotten a 1099 – not only from Sunwest Trust, but if you have IRAs from other places that you might have taken money out of, you would get a 1099-INT too.

That document tells you how much you took out of your IRA. You should give that to your tax professional, or whoever prepares your taxes, so that they can then include that into your gross income figure when calculating your income tax liability.

Now, if you’re under 59 ½ and you didn’t meet one of the exemptions that are available, you will also have to pay a 10% penalty for early withdrawal. If you are over 59 ½, and you were just taking it as part of your regular distributions for income purposes for you, then there won’t be a penalty.

There are also some other ways that you could get a 1099: because you received income out of your IRA, if you were taking it out over five years over your lifetime from an IRA that you inherited.

Basically, if you got money out of your IRA in 2014, you will receive a 1099. You will use that 1099 to prepare your taxes.

Next time, we’ll be talking about 5498s and how those work. There are some, I was going to say, exciting changes, but I don’t know how exciting they are. There are some changes coming to 5498s; we’ll explain those too.

I look forward to seeing you next week and talking to you about 5498s and the exciting or maybe not so exciting changes being made to them.

I look forward to seeing you again next week.


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