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Form 5498

Financial institutions send out Form 5498 annually to report IRA information

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What is Form 5498?

Form 5498 is an annual document issued by a financial institution to report information about individual retirement accounts and other tax-preferred savings accounts. Form 5498 is filed with the Internal Revenue Service and a copy is also sent to the person who owns the account. Essentially, Form 5498 provides independent confirmation to the IRS of the amounts you contributed to IRAs and other tax-preferred savings accounts.

Form 5498 reports various types of account information, such as

  • Contributions made to various types of IRA, HSA, MSA, and ESA plans,
  • The fair market value of the IRA or other account as of the end of the year (December 31),
  • Whether the account holder must begin taking an required minimum distributions for the year.
You'll receive a Form 5498 for each type of account you have (traditional IRA, Roth IRA, SEP IRA, and so forth) at each financial institution. For example, if you have a SEP IRA and a Roth IRA at the same bank, that bank will issue you one Form 5498 for the SEP IRA and another Form 5498 for the Roth IRA. Financial institutions will group all accounts of the same type into one Form 5498 (for example all Roth IRAs at a particular financial institution will be reported on one Form 5498).

Form 5498 comes in three varieties

Form 5498, IRA Contribution Information, reports information about IRA-based accounts such as traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRA plans.

Form 5498-SA reports information about Health Savings Accounts (HSA), Archer Medical Savings Accounts (MSA), and Medicare Advantage MSAs.

Form 5498-ESA reports information about Coverdell Education Savings Accounts.

Why are you getting Form 5498 now?

Form 5498 is sent out by January 31st to IRA account holders who will be required to take a required minimum distribution during the year. Box 11 will be checked if you will reach age 70.5 years old during the current year. This box provides a reminder that you should begin taking any required minimum distributions no later than April 1 of the year following the year you turn 70.5.

Form 5498 is required to be filed with the IRS by May 31st to report contributions to IRAs and other tax-preferred savings accounts. Additionally, contributions for the previous tax year made by April 15th are included on Form 5498 for traditional IRA and Roth IRA accounts. Accordingly, many IRA account holders receive their Form 5498 in May.

Do you need to add any of the information on Form 5498 to your tax return?

Generally speaking, any information found on Form 5498 is already included on your tax return. Most people who have already filed their tax return won't need to revise or amend their return.

How to cross check the information on Form 5498 with your tax return

Form 5498 reports contribution information for IRAs and other tax-preferred savings accounts. Contribution amounts for IRAs are reflect all contributions made up through the IRA funding deadline (usually April 15th) for a particular tax year. Contribution amounts for SEP and SIMPLE plans reflect all contributions made during the calendar year, regardless of the tax year designated by the contributor. Also, the contributions shown on the Form 5498 reflects all contributions made, even if some or all of your contributions were withdrawn.

Contributions to a traditional IRA are reported in box 1 of Form 5498. Deductible traditional IRA contributions are reported on Form 1040, line 32. Nondeductible traditional IRA contributions are reported on Form 8606, line 1. The amount shown in box 1 of Form 5498 includes all contributions made to a Traditional IRA that were designated as for the previous tax year.

Contributions to a Roth IRA are not reported on your tax return. The amount shown in box 10 of Form 5498 reflects all contributions made to a Roth IRA that were designated as for the previous tax year.

Contributions to a SEP IRA and SIMPLE IRA are reported on Form 1040, line 28, if you are self-employed. SEP and SIMPLE IRA contributions made by an employer to an employee's account does not show up on the Form 1040, but should be reflected on your W-2, box 12, Code F for SEP IRAs or Code S for SIMPLE IRAs. Be aware that SEP and SIMPLE contributions reflect funds actually contributed during the calendar year, instead of using the designated tax year as with traditional and Roth IRA contributions.

Rollover contributions (box 2 of Form 5498) should match up with any Forms 1099-R showing direct rollovers, plus any indirect rollovers you made.

Roth IRA conversions (box 4 of Form 5498) should match up with any Forms 1099-R showing Roth IRA conversions and should match up with your Form 8606 (lines 8, 16 or 21).

Health Savings Account contributions (box 2 of Form 5498-SA) reflects total contributions to a health savings account for the previous tax year. This includes both contributions made by the taxpayer and employer contributions, which are also reported on Form W-2, box 12, code W. Individual contributions should match up with the amount shown on Form 1040 (line 25 on the year 2012 version of Form 1040).

Archer Medical Savings Account contributions (box 1 of Form 5498-SA) reflect savings contributed by an employee, and should match amounts shown on Form 8853 (line 2).

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