What To Do When You Receive IRS Form 5498

What To Do When You Receive IRS Form 5498

Is this included in your tax filing or not?

Provided by Kim Dyer

When you save for retirement with an individual retirement arrangement, you probably receive a Form 5498 each year. The institution that manages your IRA must report all contributions you make to the account during the tax year on the form. Depending on the type of IRA you have, you may need Form 5498 to report IRA contribution deductions on your tax return.

  • Form 5498: IRA Contributions Information reports your IRA contributions to the IRS.
  • Your IRA trustee or issuer-not you-is required to file this form with the IRS, usually by May 31.
  • The copy you receive in the mail is a copy for your records and you DO NOT file it with your tax return.

Understanding Form 5498

Form 5498 reports various types of IRA contributions you make in a number of reporting boxes.

  • Box 1 shows the amount you contributed to a traditional IRA.
  • Box 9 reports the amounts contributed to a Savings Incentive Match Plan for Employees (SIMPLE) IRA.
  • Box 10 covers the amounts you put into a Roth IRA.
  • Although a rollover or conversion of assets from one retirement plan into an IRA isn’t deductible, they are considered contributions and will be reported in boxes 2 and 3 of Form 5498.

Direct trustee-to-trustee transfers are not usually reported on Form 5498, including transfers from:

  • a traditional IRA to another traditional IRA or to a SEP IRA,
  • a SIMPLE IRA to another SIMPLE IRA,
  • a SEP IRA to another SEP IRA or to a traditional IRA
  • or a Roth IRA to another Roth IRA.

If you’re unsure what type of IRA you have, your account administrator may indicate whether it’s a traditional, Roth, SIMPLE or a Simplified Employee Pension (SEP) in box 7.

Kim Dyer may be reached at (623) 299-9710 or kim@keystonegroupaz.com www.keystonegroupaz.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities offered through J.W. Cole Financial, Inc,. Member FINRA/SIPC. Advisory services through J.W. Cole Advisors, Inc. (“JWCA”). Keystone Capital Management Group, LLC and JWC/JWCA are unaffiliated entities.   

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