what is form 5498, IRA Contribution Information

Form 5498, titled IRA Contribution Information, is an IRS information form used to report contributions made to your Individual Retirement Arrangement (IRA) for a specific tax year. It’s important to note that this form is not filed with your tax return.

Here’s a breakdown of what Form 5498 typically reports:

  • Types of Contributions:

    • Regular IRA contributions (up to the annual limit)
    • Catch-up contributions (for those aged 50 and over)
    • Rollovers from other retirement plans
    • Repayments to your IRA
    • Fair market value of your IRA account at year-end
  • Who Receives Form 5498?

You will receive a Form 5498 from the custodian or trustee (usually a bank or brokerage firm) that holds your IRA. You should typically receive it by May 31st of the following year.

  • What to Do with Form 5498?

  • Review the Information: It’s important to review the information on Form 5498 to ensure the reported contributions and account value are accurate.

  • Keep it for Your Records: Maintain a copy of Form 5498 with your tax records for several years. It can be helpful for verifying your IRA contributions and potential tax implications.

Here are some additional points to note about Form 5498:

  • Not Used for Tax Filing: While you keep it for records, you don’t directly file Form 5498 with your tax return. The IRS receives a copy from the custodian, and they will use the information to verify your reported IRA contributions.
  • Understanding Contribution Limits: The form helps you track your contributions and ensure you haven’t exceeded the annual IRA contribution limit set by the IRS.

For more information about Form 5498, you can refer to the IRS website: https://www.irs.gov/forms-pubs/about-form-5498

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