Second Quarter 2023
Market review
Summer home maintenance
What’s happening
Important Tax Prep Info
- Planned mailing dates for tax statements
- Charitable distribution rules
- 2021 IRA contribution rules
- 2021 education account contribution rules
- Tips for how long to store documents
Note from the IFS Team
Dear Friends,
Hope your 2022 is bringing peace and goodness your way. We wanted to send a reminder of things to note when you begin preparing your 2021 income tax return. Below you will find the following:
- Planned mailing dates for tax statements
- Charitable distribution rules
- 2021 IRA contribution rules
- 2021 education account contribution rules
- Tips for how long to store documents
Please let us know if you have any questions or if you would like to fund any of your accounts before the deadlines.
Enjoying the journey with you,
The IFS Team
Planned Mailing Dates for Tax Statements
- January 31
- 1099-R for distributions taken from qualified accounts (IRA, Roth IRA, Annuity, Pension, etc.)
- 1099-Q for distributions taken from education accounts (529, ESA).
- February 15
- 1099 for TD Ameritrade taxable accounts (Individual, Joint, Trust, etc.) showing dividends, capital gains, interest, gains and losses, etc.
- 1099 for TD Ameritrade taxable accounts (Individual, Joint, Trust, etc.) showing dividends, capital gains, interest, gains and losses, etc.
- March 3
- The first of four potential mailings for TDA corrected 1099’s for taxable accounts. Mailing dates are March 3, March 17, April 7, and April 14.
- If you have a taxable TDA account, you will need to watch for corrected 1099’s since investment companies occasionally send revised information TDA.
- March 15 – recommended earliest filing date
- If you have a taxable TDA account (Individual, Joint, Trust, etc), we recommend waiting to file your taxes until around this date in case you receive a revised 1099 statement in the March 3rd mailing. Revisions are rare, but they do happen and can cause people to amend their submitted tax return.
- If you have a taxable TDA account (Individual, Joint, Trust, etc), we recommend waiting to file your taxes until around this date in case you receive a revised 1099 statement in the March 3rd mailing. Revisions are rare, but they do happen and can cause people to amend their submitted tax return.
- May 31
- 5498 showing IRA and Roth IRA contributions for prior tax year.
- 5498-ESA showing ESA (Educational Savings Account) contributions for prior tax year.
- Note – Oregon 529 accounts don’t issue tax statements for contributions. Your quarterly statements are your record.
- Important: If your TDA accounts are setup for electronic delivery, you will not receive paper tax documents. You will need to login to your TDA accounts, and you can find instructions here: Online Access for Clients
Qualified Charitable Distributions (QCD's)
A QCD allows individuals who are 70½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their Required Minimum Distribution (RMD).
- If you made a QCD donation to a charity in 2021, please note:
- A check was mailed directly to the charity.
- Your 1099-R will still show a normal distribution.
- It will be up to you or your tax preparer to note that the distribution was a QCD when filing your taxes.
- You should receive a receipt from the charity showing the gifted amount.
Donated Shares from a Taxable Account to a Charity
- If you donated shares to a charity via direct transfer from a taxable account (Individual, Joint, Trust, etc) in 2021, please note:
- Shares were transferred from your account to the charity’s account.
- You should receive a receipt from the charity showing the gifted shares and possibly the gifted dollar amount.
- You’ll also want to confirm with your tax preparer how to verify and calculate the gifted dollar amount.
2021 IRA Contributions
- IRA and Roth IRA
- Under age 50 – maximum contribution is $6,000
- Over age 50 – maximum contribution is $7,000
- The deadline for making a 2021 contribution is April 15.
- SEP IRA
Contributions cannot exceed the lesser of: $58,000 or 25% of the employee’s compensation (net earnings if you’re self-employed).
The deadline for making a 2021 contribution is either April 15 or your tax-filing deadline if you’ve requested an extension.
2021 Education Account Contributions
- Coverdell ESA
- Maximum contribution is $2,000, depending on income.
- Any individual whose modified adjusted gross income is under the limit set for a given tax year can make contributions. See this link for more info: IRS Publication 970
- The deadline for making a 2021 contribution is April 15.
- Around May 31, you will receive a 5498-ESA tax form showing the 2021 contributions you made.
- Oregon 529
- There isn’t a maximum above and beyond the account maximum of $400,000. Once the account reaches its $400,000 maximum, it can continue to earn money, but no additional money can be contributed to the account until the balance dips below $400,000 again. Note that if you choose to contribute more than $15,000 every year, there may be gift tax implications.
- The deadline for making a 2021 contribution is either the day you file your taxes or April 15 (whichever comes first).
- Your regular account statements are your record of contributions. No tax statements will be mailed for contributions.
Guidelines for Keeping Documents
- Click the link below for a printable summary of what types of documents to keep and how long to keep them.
- Tax documents
- Healthcare documents
- Legal documents
- Asset & debt related documents
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