An Explanation of IRS Form 5498—What Is It and Why Did You Receive It?
This tax form reports information on retirement savings
Form 5498 tells you—and the Internal Revenue Service—how much you contributed to retirement savings during the tax year. You'll most likely receive a copy of Form 5498 from the financial institution sometime after the first of the year if you have an IRA or another type of tax-preferred savings account. The Internal Revenue Service also received a copy.
Form 5498 also reports information regarding health savings account contributions.
Specific Information That's Reported on Each Form 5498
Form 5498 reports various types of account information, including contributions made to IRAs, HSAs and ESA plans, as well as the fair market value of IRAs or other accounts as of Dec. 31. It also reports whether the account holder must now begin taking required minimum distributions.
You should receive a separate Form 5498 for each type of account you have at each financial institution—traditional IRA, Roth IRA, SEP IRA, and others. The bank will issue you one Form 5498 for each account if you have more than one account there, such as if you have both a SEP IRA and a Roth IRA at the same bank.
But financial institutions will group all accounts of the same type into one Form 5498. For example, all Roth IRAs at a particular bank will be reported on one form.
Three Kinds of Forms 5498
Forms 5498 come in three forms, depending on what the form is reporting.
Form 5498-SA reports information about health savings accounts (HSAs).
Form 5498-ESA reports information about Coverdell Education Savings Accounts.
When Will You Receive Form 5498?
Form 5498 is sent out by Jan. 31 to IRA account holders who must take required minimum distributions the next year. Box 11 will be checked if you'll reach age 70 1/2 during the current year. This box serves as a reminder that you should begin taking RMDs no later than April 1 of the year following the one in which you turn 70 1/2. Otherwise, if you do not have to begin taking RMDs, the institution has until May 31 to send you your form.
Form 5498 must also be filed with the IRS by May 31. Contributions for the previous tax year made up until April 15 are included on Form 5498 for traditional and Roth IRA accounts, so many IRA account holders receive won't receive this information until May, but you should certainly have it in your own records.
Contributions to a traditional IRA are reported in box 1 of Form 5498. Deductible traditional IRA contributions are reported on Form 1040, line 32. Nondeductible traditional IRA contributions are reported on Form 8606, line 1. The amount shown in box 1 of Form 5498 includes all contributions made to a Traditional IRA that were designated as being for the previous tax year.
Contributions to a Roth IRA are not reported on your tax return. Nonetheless, the amount shown in box 10 of Form 5498 reflects all contributions you made to a Roth IRA that were designated as being for the previous tax year.
SEP and SIMPLE IRAs
If you're self-employed, contributions to SEP and SIMPLE IRAs are reported on Form 1040, line 28. SEP and SIMPLE IRA contributions made by an employer to an employee's account don't show up on the employee's 1040, but they should appear in box 12 on your W-2 along with a code. Code F indicates a SEP IRA, and Code S is for SIMPLE IRAs.
SEP and SIMPLE contributions reflect funds actually contributed during the calendar year instead of the designated tax year the way traditional and Roth IRA contributions are.
Rollover contributions appear in box 2 of Form 5498. They should match up with any Forms 1099-R you received showing direct rollovers, plus any indirect rollovers you made.
Roth IRA Conversions
Roth IRA conversions appear in box 4 of Form 5498. These should also match up with any Forms 1099-R you received showing Roth IRA conversions, and they should match what appears on your Form 8606 in lines 8, 16 or 21.
A word of warning: The Tax Cuts and Jobs Act, which became effective in January 2018, eliminates your ability to "undo" or recharacterize these conversions, at least through tax year 2025. The information is still reported in the same way, however.
Health Savings Account Contributions
You'll find health savings account contributions in box 2 of Form 5498-SA. These reflect total contributions for the previous tax year, both those you made and any of your employer's contributions.
Your employer's contributions are also reported in box 12 of Form W-2 under code W. Individual contributions should match up with the amount shown on line 25 of your 1040.
The Need to Include This Information on Your Tax Return
You've most likely already included any information found on Form 5498 on your tax return. Most people who have already filed their tax returns by the end of May won't have to revise or amend their returns. Form 5498 serves mostly as confirmation of the information you've already provided to the IRS. You're not required to file it with your tax return.
Even so, it's a good idea to make sure that information reported on the form matches up with your records and your tax return. You might have to file an amended return with the IRS if it does not, but check with a tax professional to be sure. Provide him with both your Form 5498 and your tax return for comparison.
How to Crosscheck the Information
Contribution amounts for IRAs reflect all contributions made through the IRA funding deadline, usually April 15 for a particular tax year. Contribution amounts for SEP and SIMPLE plans reflect all contributions made during the calendar year regardless of the tax year designated by the contributor. Form 5498 reflects all contributions made, even if some or all of them were withdrawn.