Form 5498

What is form 5498?

When a person in US saves for retirement through an IRA program, i.e. Individual Retirement Arrangement, they receive a form 5498 annually. This form defines all the contributions a person makes toward the retirement plan and the institute handling the plan is required to report all details in the said form.

Depending on the type of IRA an individual has, they must’ve a form 5498 and it would be required to be filled by an IRA custodian—not the account holder— to fill the form with the IRS, usually by May 31.

Specifying Form 5498

It portrays several IRA contributions and other account information in the reporting boxes of the form. For example;

  • Box 1 portrays the amount contributed toward the IRA.
  • Box 8 represents the contributions toward SEPs, i.e. Simplified Employee Pension.
  • Box 9 covers contributed amounts toward SIMPLE IRA, i.e. Savings Incentive Match Plan for Employees.
  • Box 10 reports the Roth IRA amounts.
  • A rollover or conversion of assets from a retirement plan into an IRA is reported in boxes 2 and 3 of Form 5498 as contributions.

A few other additional points to keep in mind when form 5498 comes to picture are;

Direct transfers within the custodians aren’t covered in this form , including the transfers from;

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