Every year, we receive numerous phone calls from taxpayers asking if their returns need to be changed because they have received Form 5498. The good news is that Form 5498 is informational and you don’t have to do anything with it.
Form 5498 is like a receipt for your IRA activity. It doesn’t require any action, but it’s a helpful reference for tracking contributions, rollovers, and account balances.
Key takeaways
- Form 5498 reports IRA contributions, rollovers, and RMDs to the IRS
- It is issued by your financial institution
- The form is purely informational—you don’t file it with your tax return
- Use it to confirm contributions, track rollovers, and ensure compliance with IRS rules for your IRA
What is Form 5498?
Form 5498 is a tax document that your financial institution files with the IRS to report contributions made to your IRA during the year. It covers contributions to Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs, along with rollovers and conversions. While the IRS gets this information directly, you also receive a copy for your records.
Think of Form 5498 as a summary of your IRA activity. It shows how much you contributed, any rollovers, conversions, and the fair market value (FMV) of your account as of December 31. For example, if you rolled over a 401(k) into an IRA or made extra contributions to a Roth IRA, all of this will appear on your Form 5498.
Who receives Form 5498?
If you contributed to an IRA, you’ll get this form, usually around May 31 (after the April tax filing deadline). That’s because you’re allowed to make IRA contributions for the previous tax year up until Tax Day.
It’s common to receive multiple Forms 5498 if you contributed to more than one type of IRA or used multiple financial institutions. For example, if you contributed to a Traditional IRA at one bank and a Roth IRA at another, you’ll get separate forms for each account.
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Why does Form 5498 arrive after tax day?
Since you can contribute to your IRA for the prior tax year until the filing deadline, institutions need time to include all contributions on the form. This delayed timing can be confusing but doesn’t impact your filing process. If you’re claiming a deduction for your IRA contributions, you should already know the amount from your records or account statements.
What’s on Form 5498?
Here’s a breakdown of what you’ll find on the form:
- Box 1: Traditional IRA contributions, which may be deductible depending on your income and tax filing status
- Box 2 & 3: Rollovers and conversions, such as moving funds from a 401(k)
- Box 10: Roth IRA contributions, which aren’t deductible but grow tax-free
- Box 11: A checkmark if you’re required to take a Required Minimum Distribution (RMD) next year (for account holders aged 72 or older)
- Fair Market Value (FMV): Your account balance as of the end of the year
Do you need to file Form 5498?
No. This is an informational form, so you don’t include it with your tax return. The IRS already has this information, and the form is for your records. It can be handy if you want to track contributions or verify your rollover amounts.
For example, if you decide to withdraw funds from a Roth IRA early, you can use past Forms 5498 to calculate your total contributions and avoid unnecessary taxes on withdrawals.
What if you over-contribute to an IRA?
Over-contributing is a common mistake. If your Form 5498 shows you exceeded the annual contribution limit, take action to correct it before the IRS penalizes you. Excess contributions are subject to a 6% penalty each year they remain in the account. You can fix this by withdrawing the extra amount (and any associated earnings) or reclassifying the contributions for the next tax year.
You may also be interested in: The latest retirement savings plan contribution limits
How to get Form 5498
Your financial institution should send it to you via mail or make it available online. If you don’t receive one but made contributions, log into your account to download the form or contact your provider directly.