What You Can Discover From Your 1099 Forms

These forms can yield valuable information about your portfolio’s asset location and tax efficiency. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=42484&elqTrackId=ac31060cebe44e12baa165a44d9690fd&elq=f3145d0b5a4d44ecbc4686e74719fd95&elqaid=42484&elqat=1&elqCampaignId=20425) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] If you’re paying a big capital gains tax bill in a year like 2022 and you didn’t sell anything, you've got a problem. Most people have a tendency to think of tax season as something to slog through: They collect the forms, input the numbers (or ship the paperwork off to an accountant), and wait to find out what they owe. It's a chore. But the documents that you've been assiduously collecting, especially the 1099s you receive from your investment providers, carry valuable insights that you can harness to improve your financial plan. Minimal income on your cash accounts should be an impetus to shop around for better yields, for example. Too many 1099s might highlight an opportunity to streamline accounts. Big capital gains distributions in a losing year like 2022 are a wake-up call to assess your “asset location.” So, [spend a bit of time with your tax documents this tax season]( it could pay off down the line. Speaking of asset location, savers often grapple with which accounts to fund. It’s Financial Planning 101 to put the maximum allowable amount into employer-provided retirement accounts, but is that always the right answer? Not if the 401(k) or other company retirement plan isn’t very good, as [this article]( discusses. On the flip side, I appreciated [my colleague Amy Arnott’s reassuring look]( at how supersavers can use the new, higher 401(k) contribution limits to play catch up with their retirement plans. Maxing out a 401(k) may sound like a lofty goal, but the years after age 50 are often high-earning years, and many people at that life stage have their kids’ college in the rearview mirror, too. Higher-income, late-career folks should, however, be sure to mind the new rules for catch-up contributions, which go into effect over the next few years. [Tax guru Ed Slott and I recently discussed them]( including what he calls the “Rothification” of 401(k) plans. Finally, [I enjoyed the conversation that Jeff Ptak and I recently had with financial planner Cody Garrett for our podcast, The Long View.]( Cody is relatively new to the financial planning profession, but I appreciate his willingness to challenge conventional wisdom on a broad cross-section of matters, from where advisors can add value to whether to contribute to Roth or traditional tax-deferred accounts. I got a lot out of the conversation, and I hope that you will, too. With warm regards, Christine Benz [What You Can Learn From Your 1099 Forms]( These forms can yield valuable information about your portfolio’s asset location and tax efficiency. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Can a Taxable Account Beat a 401(k)?]( Investment quality and expenses, as well as tax costs, are big swing factors. [Read More]( [How Higher Retirement Savings Limits Can Help You Catch Up]( Even if you’re off to a late start, there’s still hope for your 401(k). [Read More]( [What Secure 2.0 Means for Retirement-Plan Contributions]( Ed Slott on the legislation’s provisions for matching and catch-up contributions as well as for workers who currently lack a company retirement plan. [Read More]( [New Rules for IRA Distributions]( Ed Slott on what retirees need to know about required minimum distributions and qualified charitable distributions following the passage of Secure 2.0. [Read More]( [Cody Garrett: ‘Give Every Dollar a Job and a Use-By Date’]( A financial planner discusses his shift from music to finance, his work in financial education, and where he thinks advisors can add the most value. [Read More]( [Your 2023 Tax Fact Sheet and Calendar]( Bookmark this guide to stay abreast of the tax-related dates and data that should be on your radar this year. [Read More]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602