What Is IRS Form 5498?

IRS Form 5498 Explained

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Internal Revenue Service (IRS) Form 5498, “IRA Contribution Information," is a statement that details how much you’ve contributed to your IRA during the tax year.

Taxpayers can claim tax deductions for contributions made to their IRA plans. The earnings grow tax-free until the money is withdrawn.

Because the IRS needs confirmation that you did indeed make these contributions, your plan administrator must report them on Form 5498. They send this form annually to the IRS. Your plan administrator will provide you with a copy as well, which you keep for your records.

What Is Form 5498?

IRS Form 5498 is an informational form that reports not only your IRA contributions to the IRS, but any rollovers you might have made as well. It also reports:

  • Recharacterizations
  • Conversions
  • Year-end fair market values

It includes both deductible and nondeductible contributions.

Contributions to a Roth IRA don’t qualify for a tax deduction, because distributions from this type of account are tax-free, but they’re still reported on Form 5498.

IRS Form 5498

Who Uses Form 5498?

Form 5498 can help you determine your tax deduction for qualifying IRA contributions you’ve made. But you’re not necessarily entitled to deduct the entire amount listed for traditional IRA contributions.

This is because the IRS sets contribution limits for IRAs. These limits are $6,000 per year if you’re under age 50, or $7,000 per year if you’re age 50 or older.

The limit is the same for tax years 2020 and 2021. IRA contribution limits are subject to change periodically to keep up with inflation.

Suppose you had a flush year and threw an additional $3,000 into your IRA. If $9,000 is reported in Box 1 of Form 5498, your deduction is still limited to $6,000. If you’re age 50 or older, it's limited to $7,000.

Not only can you not take a deduction for the excess $3,000 you contributed, but you'd owe 6% excise tax on the extra contribution for every year it remains in your account until you withdraw it.

For tax years 2015 through 2018, the limits were $5,500 for age 49 and younger, and $6,500 for age 50 and older. In 2019, they were the same as the limits for 2020 and 2021.

Whether you can take the full deduction allowed depends on your filing status, income, and whether you or your spouse are covered by a retirement plan at work.

Since your plan administrator has already furnished Form 5498 to the IRS, you don't need to file your copy as well. Keep it for your records instead.

Types of Form 5498

Form What It's Used For
Form 5498 IRA contributions
Form 5498-ESA Coverdell ESA Plan contributions
Form 5498-SA Health Savings Accounts

Form 5498

Form 5498 reports IRA contributions, including those made to SEP-IRAs, Roth IRAs, inherited IRAs, and SIMPLE IRAs.

Form 5498-ESA

This form reports contributions to Coverdell ESA plans, a type of custodial account that's set up to pay for the educational needs of a beneficiary.

Form 5498-SA

This one is for health savings accounts, which allow you to save pre-tax dollars for qualified medical expenses.

What to Do if You Don’t Receive Form 5498

Reach out to your plan administrator if you haven't received a Form 5498 reporting your contributions.

You have up until tax filing day—normally April 15—to make IRA plan contributions for the tax year just past. Your administrator needs time after that deadline to prepare the form reporting your contributions. Therefore, they have until May 31 to issue the form.

The IRS extended many different tax deadlines in 2021 due to the COVID-19 pandemic. The individual tax return filing deadline was extended from April 15 to May 17, 2021. And since contributions for the previous tax year are usually due by tax filing day, the deadline for IRA contributions was extended to May 17 as well. As a result, the deadline for furnishing Form 5498 was June 30, 2021.

If you don't receive your form on time, make sure that the administrator has your correct address. You can also check that you did indeed make contributions in that tax year.

How to Read Form 5498

Different boxes on Form 5498 report contributions to various types of plans and a variety of other information. The most common include:

  • Box 1: Contributions to traditional IRAs you made in 2020 and through the contribution deadline in 2021
  • Boxes 2 and 3: Rollovers and conversions from another plan into an IRA
  • Box 7: Identifies your plan type
  • Box 8: Contributions to SEP-IRAs for the year in which they’re received, including employer contributions
  • Box 9: Contributions to SIMPLE IRAs for the year in which they’re received, including employer contributions
  • Box 10: Contributions to Roth IRAs you made in 2020 and until the contribution deadline in 2021.
  • Box 11: Reports whether you must begin taking required minimum distributions (RMDs) in 2021
  • Box 15a: Fair market value

Direct trustee-to-trustee transfers made between the same types of plans aren’t typically reported on Form 5498.

Fair market value (FMV) comes into play with Roth conversions (reported in box 3), or if you’ve reached the age at which you must begin taking required minimum distributions, or RMDs (box 11). This is age 72 if you didn't reach age 70 1/2 before January 1, 2020.

The CARES Act waived required minimum distributions (RMDs) from retirement accounts for 2020 due to the coronavirus pandemic.

Double-check your tax return if you haven’t filed it yet, to make sure you haven’t claimed a deduction for more than what’s reported on Form 5498. Reach out to your plan administrator if you think the figures on the form might be wrong. You can also check with a tax professional to help resolve any issues.

Requirements for Filing Form 5498

Institutions and trustees are normally required to file Form 5498 with the IRS by May 31 of the tax year (January 31 for FMV and RMD; and April 30 for Form 5498-ESA).

You should specify the year you intend your contributions to count toward at the time you make them.

This might seem counterintuitive. After all, personal tax returns are traditionally due by April 15. But you usually have until Tax Day to make contributions for the previous tax year that ended on December 31. Your plan administrator needs a little more time to include these contributions.

Key Takeaways

  • IRS Form 5498 is an informational statement that reports to you and to the IRS the amount of any IRA contributions you made during the previous tax year.
  • IRA contributions are tax-deductible up to certain limits. The IRS uses the information on Form 5498 substantiate that you made contributions.
  • It’s not necessary to file the form with your tax return, but you’ll need the information reported there to calculate how much of a tax deduction you’re entitled to take for your contributions.