Rick Rodgers, CFP®, CRPC®
Certified Retirement Counselor®

Just when you think tax season is finally behind you another tax form arrives from your IRA custodian – Form 5498.

The good news is this doesn’t mean you missed something when you filed your taxes.

However, it is important information that has been reported to the IRS.

Form 5498 reports information about IRA contributions, rollovers, Roth IRA conversions and required minimum distributions (RMD). Custodians of all types of IRAs – traditional, Roth, and SEP & SIMPLE – use this form for reporting. The type of IRA is noted in box 7.

All IRA contributions for the tax year are added together in box 1 and then broken out later in the form. Box 10 is for Roth IRAs, box 8 is for SEPs, and box 9 for SIMPLEs. The form does not report whether the contribution is deductible or non-deductible. The deductibility is determined on your tax return.

Box 2 is used to report rollover contributions. Remember, the IRS ruled in 2015 that only one rollover is permitted within a 12-month period. Direct transfers from one IRA to another are not reportable and therefore do not generate Form 5498.

Box 3 reports conversions to Roth IRAs.

Box 11 reports whether an RMD is required for the year in which the form is received. Forms being received now will refer to RMD requirements in 2016 and list your IRA balance as of December 31, 2015. Any RMD taken in 2015 was reported earlier on Form 1099-R.

Form 5498 must be mailed by May 31st but is often sent out after the April 15 tax filing deadline because IRA contributions can be made up to the deadline for the prior year. Form 5498 reports contributions by the tax year they were made, not the calendar year in which they were contributed.

The form is for your tax records and does not need to be sent with your return. You just need to verify what has been reported matches your records. Rick’s original post is here.

By Rick Rodgers

Sponsored by Willow Valley Communities

Stay informed by reading, Don’t Retire Broke, by Rick Rodgers. It’s “an indispensable guide to tax-efficient retirement planning and financial freedom”. You can purchase Rick’s book here.

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