If you make contributions to an individual retirement account (IRA), you should receive a Form 5498. While this form is completed and filed by your IRA provider, you’ll also receive the statement outlining your contributions made to the account that tax year.
If you’re a Guideline IRA participant, we’ll provide you with this document by May 31 to show you all contributions you made for the prior tax year. This includes any carryback contributions made to your traditional or Roth IRA from January 1 up to the tax filing deadline (generally, April 15) of the current year.
What information is found on Form 5498?
Examples of information found on this form may include the following:
The type of IRA (e.g., traditional, Roth, SEP, SIMPLE)
Regular and rollover contributions you made to your traditional or Roth IRA
Roth conversion amounts to your Roth IRA
Amounts that you recharacterized between a traditional IRA, SEP IRA, SIMPLE IRA and Roth IRA
The Fair Market Value (FMV) of your IRA as of 12/31 of the prior year
If you will reach the required minimum distribution (RMD) age by the end of the year in which the Form 5498 is issued, then it should also indicate whether you need to take a RMD for the year.
What should I use Form 5498 for?
Form 5498 is not required to be filed with your tax return, but it provides you an opportunity to verify that the information matches your tax return for your IRA and rollover contributions.
If you took distributions from an IRA or another qualified retirement plan and properly rolled over these amounts to your IRA, they should be reported as nontaxable distributions on your tax return. Form 5498 provides the IRS with a confirmation of the rollover, and helps to let them know the amount is nontaxable.
Why is my prior year SEP IRA contribution listed as a current year contribution on my Form 5498?
Form 5498 is issued for SEP IRAs to report any employer contributions made on your behalf as well as any rollover contributions or recharacterizations that you make to your own SEP IRA.
Contributions for the prior year can be made to SEP IRAs by employers up to the tax filing due date of the business plus extensions. Per IRS requirements, contributions made to a SEP IRA are always reported on Form 5498 for the year in which they are actually received, regardless of the tax year for which they are made.
The information provided herein is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein.