IRS Form 5498: IRA Contribution Information is a document sent to the IRS and you by your IRA trustee or custodian. It reports contributions, Roth IRA conversions, rollovers, and required minimum distributions (RMDs) for the prior tax year, along with the IRA’s fair market value (FMV). This form must be sent to the IRS by June 1 after the relevant year, but taxpayers don’t need to include it when filing taxes. They should, however, retain it for their tax records. Recharacterizations of Roth IRA conversions are no longer permitted as of January 1, 2018.
What is Form 5498?
IRS Form 5498: IRA Contribution Information is a required document that your IRA trustee or custodian must provide to the IRS – as well as to you – in May each year, reporting contributions, rollovers, Roth IRA conversions, required minimum distributions (RMDs), and the fair market value (FMV) of the account. The form is for informational purposes only – you don’t need to provide it with your tax return. The form is used to report contributions to all types of IRAs, along with rollover contributions and any recharacterized contributions, and also includes information like the name and address of the account owner. Finally, the form also reports the required minimum distributions from traditional IRAs and Roth IRAs.
IRS Form 5498 – Who Needs to Fill It Out?
IRS Form 5498 provides IRA owners, trustees, and custodians with information related to their IRA contributions, including rollovers, Roth IRA conversions, and required minimum distributions. It must be sent to the IRS by June 1 of the year following the contributions, along with a copy to the taxpayer. Your IRA trustee or custodian is responsible for completing and sending out Form 5498. No action is required by the taxpayer – just keep the form with your tax records. Form 5498 includes information about the trustee, the type of IRA, contributions, rollovers, conversions, recharacterizations, distributions, and more. This is necessary for those who need to take RMDs by a certain age and for those who take a taxable distribution from the IRA.
Step-by-Step: Form 5498 Instructions For Filling Out the Document
To fill out Form 5498: IRA Contribution Information, you need information on contributions, rollovers, Roth IRA conversions, and required minimum distributions (RMDs) for the IRA. This document is sent to the IRS and taxpayers by the custodian (trustee) of the IRA, and should be kept with your tax records but is not required to be filed when you submit your taxes. Boxes 1-5 contain information on contributions, rollovers, conversions, and RMDs while Boxes 7-12a detail the owner and type of the IRA, conversion details, and the date of the RMDs. You will also receive a Form 1099-R if the distribution from the IRA is over $10 to show what portion is taxable.
Below, we present a table that will help you understand how to fill out Form 5498.
| Information Required for Form 5498: IRA Contribution Information | Details |
|---|---|
| Contributions | Information on contributions made to the IRA |
| Rollovers | Details about any rollovers into the IRA |
| Roth IRA Conversions | Information related to Roth IRA conversions |
| Required Minimum Distributions (RMDs) | Details about the date and amount of RMDs |
| Form 1099-R | Information about Form 1099-R for taxable distributions |
Do You Need to File Form 5498 Each Year?
Form 5498 is not a form that needs to be filed with your annual tax return, but it is an important form to keep with your tax records. This form, which is issued by the trustee or custodian of your IRA at the end of each tax year, reports on IRA contributions, RMDs, Roth IRA conversions, rollovers, and the fair market value (FMV) of the IRA account. It is due each year by June 1, and is considered to be an informational document that should be retained for your records. The copy sent to you, the taxpayer, does not need to be included when filing taxes.
Download the official IRS Form 5498 PDF
On the official IRS website, you will find a link to download Form 5498. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 5498
Sources:
https://www.irs.gov/forms-pubs/about-form-5498
https://www.irs.gov/instructions/i1099r
