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Will I get a tax form 1099?

Will I get a tax form 1099?

February 05, 2024

First thing: there are many 1099 tax forms used by the IRS. As related to investments, our clients will typically receive:

  1. 1099 Consolidated: This form includes dividends, interest and other income all on one document, for nonqualified accounts
  2. 1099-R: Used to report distributions from retirement accounts

There are lots of other 1099s to report different types of taxable income. You may receive 1099s from other institutions if you:

  • received nonemployee compensation, such as from consulting or a small business.
  • received unemployment income
  • have cancellation of debt
  • received other miscellaneous income, such as rents, prizes, or award

Our clients can expect a tax form 1099 (or more than one!) if: 

  • You took a distribution from an employer retirement plan, such as a 401(k) or 403(b)
    • Including a rollover to an IRA, which isn’t considered a taxable event
  • You took a distribution from an IRA or a variable annuity
    • Including Required Minimum Distributions (RMDs)
  • You have taxable, non-qualified investments that have paid out capital gains or dividends

When will you NOT generally expect a 1099-R?

  • You will NOT get a 1099 if you transfer non-qualified-plan (think IRA) retirement assets directly from one institution to another
    • For example, transferring an IRA, inherited beneficiary account or annuity assets will not trigger a 1099-R
  • However, rolling over assets from a qualified retirement plan such as a 401(k) into a personally owned IRA, will trigger a 1099-R but coded in such a way as to indicate that this is NOT a taxable event. Details here:

Please note: this information is strictly to help assist you in preparing to file taxes. Specific questions should be directed to a tax professional. 

If you are interested in future Tax Planning, check out the services we offer here: