Tax Season Common Questions

1. Q. When are tax forms mailed?
    A: The list below gives the mailing deadline information for various forms:
   • Forms 1099 and 1099-MISC are all mailed by February 15, 2011, for accounts with no reclassification of dividends for any holdings.
   • Forms 1099 and 1099-MISC are all mailed by March 1, 2011, for accounts with known reclassifications of dividends for any holdings.
   • Form 1099-R is mailed to the client by January 31, 2011.
   • Informational Form 1099s (non-prototype/corporate accounts) are mailed to clients on February 17, 2011.
   • The first Form 5498 (contributions made during 2010) is mailed to clients by January 31, 2011.
   • A second Form 5498 (for contributions made between January 1, 2011 and April 18, 2011) is mailed to clients by May 31, 2011.
   • Forms 1099-OID REMIC and 1042-S are mailed by March 15, 2011.
   • Form 2439 (undistributed long-term gains) is mailed by March 31, 2011.
   • Form 5500 (informational) is mailed by April 30, 2011. 
   • Form K-1 mailings vary. Please check with the general partner directly.



2. Q. Can I view my tax forms online?
   A. You can view your tax forms using Investor360°^®. Once logged in, click on the Statements tab and then on Most Recent Statement at the bottom of the page. This opens a new window, giving you the option to open the Tax Documents tab, where you can view the current-year tax document.
   • You can also view your tax forms for the current year in 4myaccount!^®. Once logged in, click on the Statements & Records tab and then on Tax Documents on the left side of the screen.
   • Tax forms for prior tax years are currently not available online



3. Q. What are the limits and deadlines for 2010 IRA contributions?
   A. IRA and ROTH IRA contribution limit is $5,000. The contribution deadline for 2010 is April 18, 2011.



4. Q. How can I view my capital gains on my investments?
   A. View the specific fund companies website for your capital gains information.
   
   
5. Q. How do I remove excess contributions I’ve made to a Roth IRA?
   A. A 6-percent excise tax applies to any excess contributions not removed by the tax filing deadline, including extensions. If an excess contribution is removed prior to tax filing, only the applicable earnings are considered earned and may be subject to a 10-percent penalty.
   
   
6. Q: Can I direct-deposit federal tax refunds into my IRAs?
   A: The IRS recently issued Form 8888, which allows taxpayers to request direct deposit of their federal tax refunds into their IRAs.
   
   
7. Q: As an Investor360° user, can I access both the desktop and Web versions of TurboTax?
   A: Yes, Investor360° is compatible with both versions.
   
   
8. Q: Are PPS advisory fees deductible?
   A: It depends. You can generally deduct "ordinary and necessary expenses" paid for producing taxable investment income. Such investment expenses are treated as "miscellaneous itemized deductions" on Schedule A and include payments for investment advisory services (counsel and advice), attorney or accounting fees, custodial fees, tax advice and preparation fees, and rental expense for a safe deposit box used to store taxable securities or investment-related papers and documents. If the account is an IRA, however, and advisory fees are deducted from the account, those fees are not deductible expenses. IRA advisory fees may be deductible only if they are paid with non-IRA funds.    
   
   In order to qualify for a deduction, these expenses must total more than 2 percent of adjusted gross income. The difference between the investment expenses and 2 percent of adjusted gross income may be deducted. The amount of itemized deductions were previously subject to a phase out as income increased. In 2010, those income limits were repealed, and recent tax legislation extends this repeal through 2012.