Form 5498 also reports:
RecharacterizationsConversionsYear-end fair market values
The form includes both deductible and nondeductible contributions. Contributions to a Roth IRA don’t qualify for a tax deduction, because distributions from this type of account are tax-free. Even so, they are still reported on Form 5498.
Who Uses Form 5498?
Financial institutions that manage IRAs for clients use Form 5498 to report contributions to the IRS. You will also receive a copy if you made contributions to an IRA during the prior tax year. Form 5498 can help you determine your tax deduction for qualifying IRA contributions you’ve made, but you’re not necessarily entitled to deduct the entire amount listed for traditional IRA contributions. The IRS sets contribution limits for IRAs. The limit for tax year 2022 is $6,000 if you’re younger than age 50, or $7,000 if you’re age 50 or older. For tax year 2023, the limits are $6,500 and $7,500, respectively. If you contribute more than the annual limit to your IRA, you’ll owe a 6% excise tax on the amount above the annual limit for every year it remains in your account until you withdraw it.
Types of Form 5498
Form 5498-ESA
Form 5498-ESA reports contributions to Coverdell ESA plans, a type of custodial account that’s set up to pay for the educational needs of a beneficiary.
Form 5498-SA
Form 5498-SA is for a health savings account (HSA), which allows you to save pre-tax dollars for qualified medical expenses. It’s also for Archer medical savings accounts (MSA) and Medicare MSAs
What To Do if You Don’t Receive Form 5498
Reach out to your IRA administrator if you haven’t received Form 5498 reporting your contributions. You have until Tax Day—usually on or around April 15 every year—to make IRA contributions for the prior tax year. Your administrator has until May 31 to issue the form.
How To Read Form 5498
Different boxes on Form 5498 report contributions to various types of plans and a variety of other information. If you’re trying to read your Form 5498, here’s what you can find in each section:
Box 1: Contributions to traditional IRAs you made in the last tax year and through Tax Day of the current year Boxes 2 and 3: Rollovers and conversions from another plan into an IRA Box 7: Identifies your plan type Box 8: Contributions to SEP-IRAs for the year in which they’re received, including employer contributions Box 9: Contributions to SIMPLE IRAs for the year in which they’re received, including employer contributions Box 10: Contributions to Roth IRAs you made in the last tax year and through Tax Day of the current year Box 11: Reports whether you must begin taking required minimum distributions (RMDs) Box 15a: Fair market value
Direct trustee-to-trustee transfers made between the same types of plans aren’t typically reported on Form 5498. Double-check your tax return to make sure you haven’t claimed a deduction for more than what’s reported on Form 5498. Reach out to your plan administrator if you think the figures on the form might be wrong. You can also check with a tax professional to help resolve any issues.
Requirements for Filing Form 5498
Institutions and trustees are normally required to file Form 5498 with the IRS by May 31 of the current tax year. The deadline is Jan. 31 for FMV and RMDs, and April 30 for Form 5498-ESA. This information might seem counterintuitive. After all, personal tax returns are traditionally due by April 15, but you usually have until Tax Day to make IRA and other retirement account contributions for the previous tax year that ended on Dec. 31. Your plan administrator needs a little more time to include these contributions.
