#348 Tax Information: 1099s and Mutual Funds

1099s

We wanted to talk to you today about 1099s and what can possibly lead to the delay of receiving these. Bobby and Adam discussed mutual funds in last week’s vlog #346 ETF vs Mutual Fund. Mutual fund companies have what’s referred to as income reclassification. Income reclassification refers to changes companies make to all or part of previously reported dividend income to some other tax classification. These reclassifications in addition to mutual fund companies reporting earnings back to broker dealers later then mail distribution deadlines can result in a delay of a client receiving their 1099.

Cause and Effect

Some 1099s are received earlier in the year during January and February. However, as previously discussed mutual fund companies reporting earnings, income reclassifications and other factors can delay these 1099s all the way out until possibly mid-march. Some broker dealers will provide preliminary 1099s, for informational purposes only, in order to give clients a sneak peek of what they might see when their final 1099 arrives. Please keep in mind that it’s possible to receive corrected 1099s as well if any changes are made. If you have any questions about your 1099 or taxes in general please refer back to your CPA or accountant.

 

Adam Vansant
Associate Vice President
Wealth Consultant
Email Adam Vansant here

Felicia Ludlum
Operations Specialist
Email Felicia Ludlum here

 

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

#349 U.S. Focus #347 Far East Focus