IRA Holders: Tax Form 5498 and What You Need to Know

Published

May 31, 2022

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When people think of the tax season, they identify with getting their tax documents compiled and their returns sent to the IRS by the traditional April 15 deadline. There are some tax documents however that come after the April 15 deadline and that can sometimes cause confusion.

One such form is IRS Form 5498. Form 5498 is sent out by May 31 of each year….well after most people have already filed their taxes. Let’s take a deeper dive into the 5498.

Form 5498 is sent to holders of Individual Retirement Accounts who contributed to their IRA in the preceding year. IRA holders who contributed in 2021 will receive the 5498 by May of 2022 from the trustee of their IRA. The trustee (bank, credit union, broker, etc.) will also send a copy to the IRS. Form 5498 will show any IRA contributions as well as any transfers or rollovers involving an IRA. The form also shows the Fair Market Value of your entire IRA.

Form 5498 is not required to be filed with your tax return. It is for informational purposes only.

For account holders who made an IRA contribution, unless you filed for an extension, Form 5498 will not assist you in preparing your taxes. IRA holders should always consult their statement documents of their IRAs which will show contributions for the year to complete your taxes.

Form 5498 shouldn’t be confused with Form 1099-R. IRA holders that took distributions from their IRA will receive a 1099-R that provides those distribution amounts. This form will typically come in early February, well before the April 15 tax deadline, and should be filed by the account holder with their tax return. As a reminder, if you are at least 72 years old you must take a Required Minimum Distribution from your IRA, unless it is a Roth IRA.

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