Tax Season is Here: What to Expect

Rebecca Luebrecht |

January is often a time to hit the refresh button. As we bring in the new, it’s also time to evaluate the old—and by this, we mean it’s time to prepare to file your annual income taxes. 

And we are here to help!

As you prepare for the race to April 15, we want to help you know what to expect along the way. Here are documents to keep an eye out for regarding your investment accounts and an idea of when you can expect to receive them.

 

IRAs (Traditional, Roth, SEP, SIMPLE): What You Will Receive

You will receive a 1099-R tax statement, if you have taken reportable distributions from a qualified retirement plan, such as an IRA or qualified employer plan. You will not receive a 1099-R if you did not have distributions from your account within the last tax year.

If you have transactions requiring a 1099-R, you will receive the documents by January 31 by your preferred delivery method (mail or paperless).

You will also receive a 5498 if you made contributions or initiated a rollover during the tax year. The IRS deadline for this document is May 31, but this will not affect your taxes. The 5498 is for informational and record-keeping purposes only and is not required for tax filing, BUT please report your contributions to your tax professional so that they can properly account for them. 

 

Taxable Accounts (Individual, Joint, Trust): 1099-DIV

Taxable accounts will receive a 1099-DIV statement, which reports dividends and capital gains distributions from investments. You should receive this statement for all your taxable accounts.

These statements usually arrive by late February to early March via your preferred delivery method (mail or paperless).

 

Education Savings Accounts (ESA): 1099-Q

If you took distributions from a 529 plan or an ESA last year, you will receive a 1099-Q. If the distribution is less than or equal to the beneficiary’s qualified education expenses, the amount is not subject to federal income tax and generally does not need to be reported.

If the total exceeds the qualified expenses, the amount should be included as “other income” and could be subject to a 10% penalty.

You should receive the 1099-Q form on or before January 31.

 

Preliminary 1099 Consolidated Tax Statement is NOT for filing taxes

A preliminary 1099 should NOT be considered final and should NOT be used to file taxes with the IRS or with any state or other regulatory authority. The preliminary 1099 is only for informational purposes and to estimate income received in your account.

The preliminary 1099 will be watermarked with the message “Preliminary – Do not use for tax return.”

 

Schedule K-1

A Schedule K-1 is a tax form you may receive if you have income from a partnership, S corporation, or certain trusts or estates. While the form itself isn’t filed with your personal tax return, the information on it must be reported. A K-1 shows your share of income, losses, or deductions from that entity—even if you didn’t receive cash during the year.

Because the issuing entity must complete its own tax return first, K-1s often arrive later in the tax season than W-2s or 1099s. If you expect to receive this form, it’s important to wait to file your return and be sure the information is included accurately, as the IRS also receives a copy.

 

Hire a Pro or DIY? Choosing How to File Your Taxes.

Working With a Tax Professional

Pros:

  • Expert guidance for more complex situations, such as inheritance, K-1s, investments, or multiple income sources
  • Helps reduce errors or identify deductions
  • Helps with finding tax credits you might miss
  • Provides support if questions arise or if the IRS requests clarification

Cons:

  • Usually costs more than filing on your own
  • Requires scheduling and sometimes sitting for a consultation

Doing It Yourself

Pros:

  • Lower cost or free, depending on the software used
  • Convenient and flexible—you can file on your own schedule
  • Works well for straightforward tax situations

Cons:

  • Higher risk of errors with complex forms or income sources
  • Limited support if issues arise after filing
  • Tax deductions could be missed
  • Can be time-consuming and stressful, especially if tax rules change
     

IRA Contribution Limits

The new year brings new opportunities to save. IRA contribution limits have increased for 2026, giving investors the chance to put more toward their long-term goals. Because retirement decisions can have important tax implications, we encourage you to consult with a qualified tax professional before making contributions.

Remember, IRA contributions for the prior tax year can be made up until April 15, giving you added flexibility as you finalize your tax planning. Before you make a contribution, it’s wise to consult with a qualified tax professional to ensure it fits your overall retirement strategy.
 

Contribution Limit

2026 Tax Year

IRA contribution limit - 219(b)(5)(a) - under age 50

$7,500

IRA contribution limit - 219(b)(5)(a) - age 50 or over 

$8,600

SIMPLE IRA maximum contributions - 403(p)(2)(E) - under age 50

$17,000

SIMPLE IRA maximum with catch-up limit - 414(v)(2)(B)(ii) - age 50 or over

$21,000

Coverdell ESA contribution limit

$2,000

Employer defined contribution limit - 415(c)(1)(A)

$72,000

Elective deferral limit - 402(g)(1)

$24,500

Elective deferral with catch-up limit - 414(v)(2)(B)(i)

$32,500

Annual compensation cap - 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii)

$360,000

SEP contribution limit*

Lesser of; 25% compensations on or $72,000

SEP minimum compensation - 408(k)(2)(C)

$800

SEP maximum compensation - 408(k)(3)(C)

$360,000

457 elective deferrals - 457(e)(15)

$24,500

Employer Sponsored 401(k)

$24,500

Defined benefit limit - 415(b)(1)(A)

$290,000

Highly compensated employee (HCE) - 414(q)(1)(B)

$160,000

Key employee - 416(i)(1)(A)(i)

$235,000

Social Security taxable wage base

$184,500

 

*The contributions you make to each employee's SEP-IRA each year cannot exceed the lesser of 25% compensation or the amount for the respective tax year.