Did your taxes? Forgot something?
Hmm, its the last thing you want to think about, but did you file all of your income when you submitted your tax return?
One bit of income that folks often forget is a distribution from their retirement account. If you took money out of your 401K during the tax year, you should have a 1099-R document sent to you by mail, or more likely its sitting in a recliner sipping a lemonade and waving at you from your broker's website or the website of the company that services your company's retirement funds, trying to get your attention.
Go out to that website and see if there are 1099-R documents relaxing out there. You may even find that there are forms for previous tax years that you didn't even have knowledge of. If so, hello amendment. You should have one also if you moved your retirement funds from one organization to another. If you did the move directly or within 60 days, that will not create a taxable event, but you should keep track of that form.
And yes those funds you took from your retirement account is considered income. I know, you may have asked them to withhold taxes, but since they are unaware of your total income, what is withheld may actually not be enough, so just be aware.
Yep, so you were about to log on to find out if any of those 1099-R's are awaiting your action... good luck.
Hi, I hope to encourage readers, young & old alike, to take a more active role in your personal finances, to learn about your money and how to keep more of it. The goal is not to tell you what to do with your money, but to help inform you about money so that you can make responsible money decisions of your own, and the best possible money choices of your own. Welcome! Glad you could make it. Come on in, get cozy and let’s talk!
7.17.2020
Subscribe to:
Posts (Atom)
"No matter who you are, making informed decisions about what you do with your money, will help build a more stable financial future for you and your family." Alan Greenspan