As we move into the 2025 tax season, our team wanted to share a few time-sensitive reminders:
- Brokerage accounts (Fidelity, Pershing, Schwab, TD Ameritrade, etc.) differ from direct custodial accounts because they aggregate information from multiple sources. This means the data takes longer to compile and review, and brokerage-based tax documents are often among the last to arrive. It’s also common to receive “Draft 1099” statements before the final versions. Drafts can still be helpful for preliminary conversations with your tax professional.
- IRA contribution documents are not mailed until around May 15th, since IRA contributions for the 2025 tax year can be made up until April 15, 2026.
- If you completed retirement plan transactions, such as rollovers, conversions, or withdrawals, you may have received 1099-R forms. These are often informational, but your tax professional may need additional clarity, particularly on conversions from pre-tax or non-deductible IRAs to Roth IRAs. Please reach out if you need supporting documentation.
- Required Minimum Distributions (RMDs) remain an important consideration for retirees. Your start date depends on your date of birth, and inherited IRAs may also require RMDs depending on the original account owner’s passing and whether they had begun their own distributions.
Capital gains reminders:
– Short-term capital gains are taxed as ordinary income at your effective rate.
– Long-term capital gains generally receive more favorable tax treatment.
Tax brackets and income thresholds adjust annually for inflation, so be sure you’re working with the most current information.
Roth IRA contributors: Keep an eye on your Modified Adjusted Gross Income (MAGI). If you accidentally exceed the income limits, you have until October 15th to correct ineligible contributions without penalty.
Have questions? Missing a form? Changed jobs or inherited investment assets?
Team Lindenberg is here to help.