Please Read. Important Tax Information Enclosed. TAX GUIDE 2017 Tax Information for Your Retirement Account
Table of Contents Form 1099-R...................................................................................... 4 Form 5498...5-6 Fair Market Value (FMV) Letter....7 Dear Investor: In this guide, you will find important year-end tax reporting information for your investment account custodied at the SEI Private Trust Company. We hope this guide is helpful when you or your tax advisor are completing and filing your income tax return. If you have specific questions about the reporting of your distributions, or which tax forms to use, please consult your personal tax advisor. If you have a specific question regarding your investment account, please contact your investment advisor. If you have a question for the Internal Revenue Service (IRS), call 800-TAX-1040, or go online at irs.gov. Sincerely, SEI Private Trust Company A Special Note for Investors This information is provided for your general guidance. This information is not intended to be a substitute for, nor should it be construed as, tax, legal, or other professional advice. Before undertaking any tax filing, it is recommended that you consult with a tax professional. This information is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code, or promoting, marketing or recommending to another party any transaction or matter addressed herein.
Required Minimum Distributions for 2018 1 IRA holders age 70½ or older in 2018 are subject to Required Minimum Distributions (RMD). IRA holders who attain age 70½ in 2018 have until April 1, 2019, to take their 2018 RMD. IRA holders who attained the age of 70½ prior to 2018 must take their 2018 RMD by December 31, 2018. 2 Holders of Inherited IRAs may also be subject to RMDs in 2018. Truncated Social Security Numbers Filers of information returns are permitted to truncate an individual payee s Tax Payer Identification Number (TIN) on payee statements furnished to the payee on paper or electronically. The provision applies only to information returns in the 1098, 1099, and 5498 series. Under this optional program, payers may replace the first five digits of the payee s SSN, EIN, ITIN, or ATIN with asterisks or the letter X. For example a Social Security number will now appear as XXX-XX-1234. This will enable better protection of personally identifying information for the recipients. SEI Private Trust Company will again truncate your TIN. State Withholding for IRA Distributions If you elected to have the SEI Private Trust Company remit state tax withholding on distributions from your IRA account, you may receive two IRS 1099-R forms (Distributions from pensions, annuities, retirement or profit sharing plans, IRAs, insurance contracts, etc.) if the following events occur in the order listed: You take a distribution from your account and have no state withholding You take a subsequent distribution with state tax withholding Both of these forms need to be included when you or your tax professional prepare your IRS Form 1040 (U.S. Individual Income Tax Return). These forms will be formatted slightly differently; both will reflect SEI Private Trust Company as the payer. Both 1099-R forms will be printed and mailed to you separately by the January 31, 2018, IRS mailing deadline. For IRA Accounts Holding Partnership Assets If an IRA account has in excess of $1,000 of UBTI income, SEI will be required to file a Form 990-T on your behalf. As part of the filing process, SEI is required to request an EIN for the IRA. As such, clients will be required to submit a Form SS4 along with a statement authorizing SEI to request an EIN on your behalf. Once an EIN is received, the 990-T will be processed, and any taxes due will be paid out of your IRA account assets. If you receive a K1 form for a holding within your IRA account from the partnership, please forward this to: SEI Private Trust Company Attn: Leveraged Tax Reporting 1 Freedom Valley Dr. Oaks, PA 19456 The following pages describe the forms you may receive from SEI in early 2018, as well as an explanation of the information shown and how to use this data when filling out your 1040 or 1040A tax form(s). Please note that some investors may be eligible to file a Form 1040EZ. Please refer to the instructions for this form from the IRS. 3
Form 1099-R This form reports the total distributions from pensions, annuities, retirement or profit sharing plans, IRAs, and insurance contracts during the prior calendar year. Use it to report distributions from these investments in the applicable parts of Form 1040 or Form 1040A. Form 1099-R will be mailed by January 31, 2018. A B C D E A Gross Distribution Reports the amount received in 2017 including state and federal withholding. If the account is an IRA, see the instructions for Form 1040, Line 15a, on pages 22-23 or Form 1040A, Line 11a on page 21. For other types of retirement plans, use the instructions for Form 1040, Line 16a, on pages 23-25 or Form 1040A, Line 12a, on pages 21-23. B Taxable Amount Reports the portion of total distributions from Line 1 that are taxable. If the account is an IRA, see the instructions for Form 1040, Line 15b, on pages 22-23, or Form 1040A, Line 11b on pages 21. For other types of retirement plans, use the instructions for Form 1040, Line 16b, on pages 23-25, or Form 1040A, Line 12b, on pages 21-23. C Taxable Amount Not Determined If this box is checked, it indicates that the SEI Private Trust Company did not have enough information to calculate the taxable amount. In this case, follow the instructions for Form 1040, Line 15b or 16b, or Form 1040A, Line 11b or 12b, as applicable, to determine the taxable amount. D Federal Income Tax Withheld Shows federal tax withholding from one or more 2017 distributions. Include this amount on Form 1040, Line 64, or Form 1040A, Line 40. E Distribution Codes Indicates the IRS code that identifies the type of distribution taken from the account during the applicable tax year. Refer to the opposite side of Form 1099-R for an explanation of each code. If distributions are received requiring multiple codes, a separate Form 1099-R will generally be received for each code. 4
Form 5498 Form 5498 reports the contributions, including any catch-up contributions, the fair market value (FMV) of the account, and when you are subject to RMDs. You will receive a 5498 for any IRA accounts that you hold if they received contributions in a given year. A B C D E F G H I J K L A Box 1 Traditional IRA Contributions Shows traditional IRA contributions for 2017 you made in 2017 and through April 17, 2018. These contributions may be deductible on your Form 1040 or 1040A. However, if you or your spouse were an active participant in an employer s pension plan, these contributions may not be deductible. This box does not include amounts in boxes 2-4, 8-10, 13a, and 14a. B Box 2 Rollover Contributions Shows any rollover, including a direct rollover to a traditional IRA or Roth IRA, or a qualified rollover contribution (including a military death gratuity, SGLI payment, or qualified settlement income) to a Roth IRA you made in 2017. It does not show any amounts you converted from your traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA. C Box 3 Roth IRA Conversion Amount Shows the amount converted from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA in 2017. Use Form 8606 to figure the taxable amount. D Box 4 Recharacterized Contribution Shows amounts recharacterized from transferring any part of the contribution (plus earnings) from one type of IRA to another. E Box 5 FMV of Account Shows the FMV of all investments in your account at year-end. However, if a decedent s name is shown, the amount reported may be the FMV on the date of death. If the FMV shown is zero for a decedent, the executor or administrator of the estate may request a date-of-death value from the financial institution. Please note that the FMV shown only refers to the accounts specifically listed on page 1 of this form. If you have related accounts that did not have any reportable contributions or RMDs during 2017, the FMV of those accounts will not be included on this form. If you have an SEI-managed or goals-based account, the FMV reported in this box represents the aggregate FMV of all associated sub-accounts. F Box 7 IRA Type Check Box May show the kind of IRA reported on this Form 5498. G Box 8 SEP Contributions Shows SEP contributions made in 2017, including contributions made in 2017 for 2016, but not including contributions made in 2018 for 2017. If made by your employer, do not deduct on your income tax return. If you made the contributions as a self-employed person (or partner), they may be deductible. 5
H Box 9 SIMPLE Contributions Shows SIMPLE contributions (both salary deferral and employer contributions) made in 2017. If made by your employer, do not deduct on your income tax return. If you made the contributions as a self-employed person (or partner), they may be deductible. I Box 10 ROTH IRA Contributions Shows Roth IRA contributions you made in 2017 and through April 17, 2018. Do not deduct on your income tax return. J Box 11 RMD Check Box If the box is checked, you must take an RMD for 2018. An RMD may be required even if the box is not checked. If you do not take the RMD for 2018, you are subject to a 50% excise tax on the amount not distributed. K Box 13 13a. Postponed Contribution Shows the amount of any postponed contribution made in 2017 for a prior year. 13b. Year Shows the year to which the postponed contribution in box 13a was credited. 13c. Code For participants who made a postponed contribution due to an extension of the contribution due date because of a federally designated disaster, shows the code FD. L Box 14 14a. Repayments Shows the amount of any repayment of a qualified reservist distribution or federally designated disaster withdrawal repayment. 14b. Code Shows the code QR for the repayment of a qualified reservist distribution or code DD for repayment of a federally designated disaster distribution. 6
Fair Market Value (FMV) Letter The FMV letter provides clients with the FMV of their retirement accounts as of December 31 of each year. The letter is provided by the end of January. The FMV statement mailed to you by January 31, 2018, includes a combined total of the FMV of all of your IRA accounts held by SEI Private Trust Company. Please refer to that statement for FMV information for accounts not listed on Form 5498. 7
If you have a question for the IRS, call 800-TAX-1040, or go online at irs.gov. Neither SEI nor its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor. 2016-2018 SEI 18e768-ADV-97057 (01/18)