States, agencies, and instrumentalities that establish and maintain a qualified ABLE program are required to file Form 1099-QA with the IRS, detailing each ABLE account’s distributions and terminations during the previous year. Additionally, recipients of such distributions must receive a statement from the required filer.
What is Form 5498-QA?
Form 1099-QA is used to report any distributions made or terminated from a qualified ABLE program during the calendar year, as established by a state or its agency or instrumentality. It must be filed with the IRS on or before March 1 of the following year by an officer or employee of the state or their designee. Moreover, if a designated beneficiary of an ABLE account changes, they may be required to provide a statement to all contributors, including those that received returned contributions plus earnings. Lastly, when providing recipient statements, it is optional to truncate the TIN of the recipient.
IRS Form 5498-QA – Who Needs to Fill It Out?
IRS Form 1099-QA must be filled out by any state or its agency or instrumentality who establishes and maintains a qualified ABLE program and files with the IRS on or before March 1 following the calendar year in which a distribution was made or terminated. Officers or employees of the state, or its agency or instrumentality having control of the qualified ABLE program, or their designees, must file the Form 1099-QA. They must also furnish a statement to the designated beneficiary of the ABLE account and each contributor who received a returned contribution. To protect the identity of the recipient, all filers of this form may truncate the recipient’s TIN on payee statements.
Step-by-Step: Form 5498-QA Instructions For Filling Out the Document
When filing Form 1099-QA, the designated officer or employee must do so on or before March 1 of the following year, or use a designee for the filing. A statement must be provided to the designated beneficiary and any contributors receiving a returned contribution, and a truncated TIN may be used for the recipient’s statement. Any change in the designated beneficiary must also be reported, unless the new beneficiary is an eligible individual and a member of the former beneficiary’s family. See the current General Instructions for Certain Information Returns for more information.
Below, we present a table that will help you understand how to fill out Form 5498-QA.
| Form Name | Information Required | Details |
|---|---|---|
| Form 5498-QA | Instructions for Form 5498-QA | Instructions for properly filling out Form 5498-QA, including deadlines, statements, and regulations for reporting information. |
Do You Need to File Form 5498-QA Each Year?
Yes. Any state or its agency or instrumentality that establishes and maintains a qualified ABLE program must file a Form 1099-QA with the IRS each year, by March 1st of the following year, for any ABLE account from which distributions were made or which was terminated during the calendar year. The filing may be done by an officer or employee of the organization, or their designee. Additionally, the filer must furnish a statement to the designated beneficiary of the ABLE account as well as all contributors who received a returned contribution (plus earnings) attributed to the calendar year. All filers of this form may truncate a recipient’s tax identification number on recipient statements.
Download the official IRS Form 5498-QA PDF
On the official IRS website, you will find a link to download Form 5498-QA. 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-QA
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