tax bleg

[gusl]

I think I haven't been claiming my 401(k) contributions for the past several years. Every year, my employer sends me a W2 and my bank sends me a 1099, but my IRAs never send me anything. Am I supposed to keep track of my yearly contributions by myself? How many years can I put this off, before I can claim them all at once?

Comments

[gwillen.livejournal.com]

I believe your W2 should already account for your 401(k). When you say IRAs, do you mean IRAs, or do you mean your 401(k)? If the former, they must be held with some brokerage, yes? So that brokerage should be sending you 1099s... as far as deducting non-Roth IRA contributions from income, I'm not sure where that goes.

[gustavolacerda.livejournal.com]

by IRA, I mean the 401(k) for my old job. I haven't been putting money there anymore, but I am getting dividends (or losses, depending on the year).

[gwillen.livejournal.com]

Interesting. And you don't get 1099s for that? Are the dividends/interest in excess of $10/yr?

[gwillen.livejournal.com]

Note that I don't really know what I'm talking about, and am guesstimating based on limited knowledge. But if you do figure this out I'd be curious to know the official answer.

[xuande.livejournal.com]

I'm no tax professional, but I was under the impression IRAs that aren't Roth IRAs are tax-deferred, so you don't pay any taxes on dividends until you start withdrawing, at which point the whole withdrawal counts as taxable income.

[bhudson.livejournal.com]

That's a traditional IRA; Roth IRAs you pay the tax up-front and no tax upon withdrawal. 401(k) is for all practical purposes a traditional IRA.

In all cases, you pay taxes either as the money goes in or as the money comes out, but not while the money sits in the account.

[bittercrackbaby.livejournal.com]

If you contributed to the 401k in your current year, you would be receiving a W2 with (Salary - 401k contributions) as your taxable income.

Your 401k is completely tax deferred until you take money out of it. You won't see a tax forum unless you receive a distribution (early withdrawl or you elect to roll it over into a new retirement plan).

Your 401k plan administratator typically should be sending you statements once a quarter, and should be happy to answer any questions about it.