Question #1: I just received a mailing from TD Ameritrade re: Standing Letter of Authorization. Should I be concerned? Did anything change? Do I need to do anything? You may have received a notice from TD Ameritrade regarding the bank account that is linked to your investment account. You should have received a notice for each TD account that is connected to a bank account. An account link facilitates withdrawals and deposits between your bank account and your TD Ameritrade investment account. This notice is informational and is not an indication of any changes. While no action is needed on your part, please review the bank account information listed to ensure that the correct account is linked. Please let us know if anything is incorrect or if you have any questions.
Question #2: What causes corrected 1099s? During tax season, receiving corrected 1099s from investment accounts has become commonplace. The majority of the time, the custodian (such as TD Ameritrade) is not causing the revisions. Custodians are required to issue a corrected 1099 no matter how insignificant the changes are. To produce a 1099, custodians receive and aggregate all available information relating to distributions made from investments in an account during the previous calendar year. One such investment is a mutual fund, which is often composed of hundreds of securities. Your portfolio can be made up of ten or more mutual funds, and if just one of these securities within a single mutual fund issues a correction, your 1099 needs to be revised. The good news is that the corrections are typically minor, and even if you receive a revised/corrected 1099 the correction could be small enough that you may not need to do anything. We do recommend that you provide your tax professional any revisions that you receive. You may click here to read more about this.