The tax document you’ll receive for your 401k contributions in 2023 will most likely be a Form 1099-R in 2024. Here’s why:
- Document: Form 1099-R is typically used to report distributions from retirement accounts. However, in some cases, it’s also used to report ** rollovers and contributions**.
- Timing: You typically receive a 1099-R in the year following the tax year the contribution or distribution occurred.
- 2023 Contribution: Since you contributed to your 401k in 2023, the related tax document will likely be issued in 2024.
There are a few things to consider:
- Employer Reporting: Not all employers use Form 1099-R to report employee contributions. Some might use a different form or provide the information electronically.
- Contribution Type: Form 1099-R is typically used for rollover contributions (moving money from another retirement account to your 401k) or excess contributions that were removed from your account. Regular contributions to your 401k throughout the year usually don’t get reported on a 1099-R.
Here’s what you can do to be certain:
- Check with your employer’s HR department or online portal. They can clarify which document you’ll receive (if any) for your 401k contributions in 2023.
- Wait for the document in 2024. You’ll likely receive the 1099-R (or another relevant document) sometime in early 2024.
In most cases, you won’t need the 1099-R to file your 2023 tax return because your contributions reduce your taxable income for the year. However, you’ll use the information on the form (when you receive it) to file your 2024 tax return.