The month of March is when many Americans are just ticking down the calendar days until their taxes are due. If you have a retirement account, you may think that you’ve already settled taxes with it. However, there are some hidden tax traps when it comes to retirement planning. Delayed 1099 forms arrive, custodians issue corrected statements, and overlooked withdrawals can suddenly become taxable income. This can add to your tax bill, reduce your refund, or potentially add penalties that you weren’t aware of. That said, here are seven potential tax traps that could show up this month.
