What tax documents will I receive?
If you received any distributions from your account in 2022, you will receive form 1099-R.
If you receive multiple 1099-R forms, it is because you received a cash distribution and an in-kind distribution was processed for an investment previously held by the IRA.
You will receive form 5498 if you had an account with Preferred Trust Company as of December 31, 2022. Form 5498 discloses the value of your account (cash and investments) as of the last day of the year.
When will tax documents be available?
All tax documents will be available online by January 31, 2023. This is the IRS deadline for all tax forms to be provided to clients.
How will I receive my 1099-R?
If you are a current client with Preferred Trust Company, you will receive your tax documents through the “Account Online Portal”.
If you no longer have an account with Preferred Trust you will receive your tax documents via U.S. Mail
Do I have time to review or correct my 1099-R?
Yes, form 1099-R must be submitted to the IRS by Preferred Trust Company by March 31,2020. Please contact Preferred Trust as soon as possible if corrections are required.
What do the distribution code on my 1099-R form mean?
Distribution codes are located on the back of your form 1099-R. Some of the common codes are:
1 - Early distribution, no known exception.
2 - Early distribution, exception applies.
7 - Normal distribution.
K - Distributions of traditional IRA assets not having a readily available FMV.
B - Distribution from a designated Roth account.
J - Early distribution from a Roth IRA.
Will I receive a form 5498-tax document?
Every client will receive form 5498 if your account was opened as of December 31, 2022. Form 5498 provides a total account value as of December 31, 2022 which includes contributions, rollovers and conversions.
Do I have time to review or correct my 5498?
Yes, form 5498 must be submitted to the IRS by Preferred Trust Company by May 31, 2023. The deadline for making 2022 Contributions is April 15, 2023.
What if I didn’t receive a tax document?
If you did not receive a distribution from your IRA you will not receive form 1099-R. Please contact Preferred Trust Company if you did not receive form 5498. You can review the transaction history of your account online to verify distributions and contributions.
