Form 5498

What is Form 5498?

Form 5498 is an Internal Revenue Service (IRS) tax form that outlines contributions and other details about your Individual Retirement Accounts (IRAs). The institution that administers your IRA will send you Form 5498. You will receive Form 5498 because it documents contributions, rollovers, Roth IRA conversions, and Required Minimum Distributions.

Form 5498 is sometimes referred to as a ‘5498-tax statement’, which is the same as a 5499-tax statement. The IRA custodian or trustee is required to send you the IRS Form 5498 on or before May 31 of each year.

What are the types of Accounts Covered by Form 5498?

Financial institutions issue Form 5498 to report contributions and related information for various tax-advantaged retirement accounts. Below are the account types and what the form typically reports for each.

1. Traditional IRA (Individual Retirement Arrangement)

Form 5498 reports annual contributions, rollover amounts, recharacterizations, and the fair market value (FMV) of the account for Traditional IRAs. If the account holder is required to take required minimum distributions (RMDs), the form also includes relevant RMD information.

2. Roth IRA

For Roth IRAs, the form reports contributions and any conversions from Traditional IRAs or other eligible retirement plans. While Roth IRAs do not have RMD requirements during the owner’s lifetime, Form 5498 still includes FMV and contribution details.

3. SEP IRA (Simplified Employee Pension)

SEP IRA contributions, which employers typically make on behalf of employees, are reported on Form 5498. The form includes the total contribution amount and the FMV of the account.

4. SIMPLE IRA (Savings Incentive Match Plan for Employees)

Form 5498 is also used to report both employer and employee contributions made to SIMPLE IRAs. Like other IRAs, the FMV of the account is also reported.

5. Inherited IRAs

In the case of inherited IRAs, Form 5498 reports the fair market value and distribution-related information. If the account holder is required to take distributions, Box 11 of the form may be checked to indicate this obligation.

6. Rollover Contributions

When a rollover occurs from one retirement account to another. For example, from a 401(k) to a Traditional IRA, the amount is reported on Form 5498 as a rollover contribution.

7. Recharacterized Contributions

If an individual recharacterizes a contribution from one type of IRA to another such as moving a Roth IRA contribution back to a Traditional IRS, the recharacterization is reported on Form 5498.

8. Qualified HSA Funding Distribution (QHFD)

If funds are transferred from an IRA to a Health Savings Account (HSA) under the Qualified HSA Funding Distribution provision, Form 5498 reports this transaction as well.

What Information is Reported on Form 5498?

Form 5498 has all the details about your IRA. Here’s a breakdown:

• Box 1: Traditional IRA contributions for the year and through April 15 of the following year.
• Box 2: Rollovers, including direct and qualified rollovers.
• Box 3: Amount converted from a traditional, SEP, or SIMPLE IRA to a Roth IRA.
• Box 4: Recharacterized contributions transferred between IRAs.
• Box 5: Fair market value (FMV) of the account at year-end.
• Box 7: Type of IRA reported (Traditional, Roth, SEP, or SIMPLE).
• Box 10: Roth IRA contributions for the year.
• Box 11: Indicates if an RMD is required for the following year.

 

Other boxes cover late rollover contributions, disaster-related repayments, and FMV for unique asset types.

What are the instructions for Form 5498?

For all 2024 IRAs, Form 5498 must be filed with the IRS by May 31, 2025, and a copy must be sent to the account holder by the same date.

• Paper filing: Mail Form 5498 along with Form 1096 (Annual Summary and Transmittal of U.S. Information Returns) to the address on the Form 1096 instructions.
• Electronic filing: Custodians filing 250 or more forms must file electronically through the IRS FIRE (Filing Information Returns Electronically) system.

If the filing deadline falls on a weekend or holiday, the deadline is the next business day.

Here’s a step-by-step guide for filling out Form 5498:

Step 1: List accounts requiring Form 5498

File Form 5498 for each IRA, Traditional, Roth, SEP, and SIMPLE IRAs. If multiple accounts are under one IRA, only one form is required. A separate form is required for the same custodian.

Step 2: Gather information for the accounts

• Contributions, including catch-up contributions for participants 50 or older.
• Rollovers and recharacterizations.
• FMV as of 12/31/2024.
• Required minimum distributions (RMDs), if applicable.

Step 3: Fill out Form 5498. Ensure checking the above-mentioned Box 1-7.

Step 4: Review the form thoroughly and submit it.

What Are the Key Deadlines and Retention Guidelines for Form 5498?

1. IRA Reporting Deadlines

Custodians and trustees handling Traditional, Roth, SEP, and SIMPLE IRAs must comply with strict IRS reporting deadlines. Below are the key dates:

Form/Statement	Purpose	To the IRS by	To IRA Owner by
IRS Form 1099-R	Reports distributions	February 28 (paper) / March 31 (electronic)	January 31
FMV Report	Reports Fair Market Value (FMV)	May 31* (June 2, 2025)	January 31
RMD Notice	Reports RMD-related information	May 31* (June 2, 2025)	January 31
IRS Form 5498	Reports contributions and FMV	May 31* (June 2, 2025)	May 31* (June 2, 2025)

*If a deadline falls on a weekend or holiday, it is extended to the next business day.

2. Additional SIMPLE IRA Deadlines

SIMPLE IRAs follow similar reporting rules but have extra deadlines specific to plan adoption and annual notices.

Form/Statement	Purpose	To the IRS by	To IRA Owner by
Statement of Account Activity	Reports account activity	N/A	January 31
SIMPLE Adoption	Deadline to adopt a SIMPLE plan	N/A	*October 1 (before 60-day election period)
SIMPLE IRA Employer Notice	Annual notice to eligible employees	N/A	November 1 (before 60-day election period)
Summary Description	Provides required information to employees	N/A	November 1 (before 60-day election period)

*The deadline to adopt a SIMPLE plan for the current year is October 1, 2025, for 2025 plans.

3. HSA Reporting Deadlines

Health Savings Accounts (HSAs) have distinct reporting timelines for contributions and distributions.

Form/Statement	Purpose	To the IRS by	To HSA Owner by
IRS Form 1099-SA	Reports distributions and date-of-death FMV	February 28 (paper) / March 31 (electronic)	January 31
IRS Form 5498-SA	Reports contributions and FMV	May 31* (June 2, 2025)	January 31

4. CESA Reporting Deadlines

Coverdell Education Savings Accounts (CESAs) have specific deadlines for reporting contributions and distributions.

Form/Statement	Purpose	To the IRS by	To Participant by
IRS Form 1099-Q	Reports distributions, including transfers	February 28 (paper) / March 31 (electronic)	January 31
IRS Form 5498-ESA	Reports contributions and transfers	May 31* (June 2, 2025)	April 30

*Deadlines are extended to the next business day if they fall on a weekend or legal holiday.

What Should You Do If There Is an Error on Form 5498?

If you notice an error on Form 5498, it’s important to address it promptly, as the information is reported directly to the IRS and may affect your tax records. Here’s what you should do:

1. Review the Form Carefully

Start by verifying the details reported on the form, including:

• Contribution amounts
• Type of account (Traditional, Roth, SEP, SIMPLE)
• Fair market value (FMV)
• Rollover or recharacterization information
• Required Minimum Distribution (RMD) box, if applicable

Even small discrepancies like an incorrect contribution year should not be ignored.

2. Contact the Financial Institution

If you find an error, reach out directly to the bank, brokerage firm, or trustee that issued the form. Most institutions have a process for reviewing and correcting reporting mistakes. Be prepared to provide documentation (like account statements or transaction confirmations) to support your claim.

3. Request a Corrected Form 5498

If the institution agrees that an error was made, they should issue a Corrected Form 5498. This corrected form will replace the inaccurate one and be re-submitted to the IRS to amend their records as well.

4. Don’t File Form 5498 with Your Tax Return

Form 5498 is for informational purposes only and does not need to be submitted with your personal tax return. However, any errors, especially those affecting contribution limits or rollover status can trigger IRS follow-up if left uncorrected.

5. Document the Correction

Keep a copy of the original and corrected Form 5498 along with your correspondence and any documentation submitted. This will be helpful in case of future IRS inquiries.

6. Follow Up If Necessary

If the institution fails to correct the issue or you disagree with their response, you may need to escalate the matter. This could include filing a complaint with the IRS or consulting a tax professional for further steps.

How does Form 5498 affect your taxes?

Form 5498 is an informational document. While you don’t have to attach it to your tax return, it ensures your reported IRA contributions and rollovers match your tax filings.

• Traditional IRA contributions: May be deductible based on income and employer plan participation.
• Roth IRA contributions: No immediate tax deduction, but qualified distributions are tax-free.
• Rollover and conversion reporting: Makes sure rollovers and conversions are taxed properly.

Please note that: You don’t need Form 5498 to file your taxes, but keep it for your records to verify contributions and rollovers.

Is form 5498 the same as 1099-R?

No, Form 5498 and Form 1099-R are different. Here’s how:

Form 1099-R shows both taxable and non-taxable amounts so you can figure out what part of your distribution needs to be reported as income.
Form 5498 shows IRA contributions, rollovers, conversions, and the Fair Market Value (FMV) of the account at year-end.

If you took distributions or rolled over funds into an IRA in the same year you may get both forms, but they show different things about your retirement account activity.

Here’s a comparison table highlighting the key differences between Form 5498 and Form 1099-R:

Feature	Form 5498	Form 1099-R
Purpose	Reports IRA contributions and account information	Reports distributions from retirement accounts
Who Files It	Financial institution (trustee or custodian)	Financial institution (trustee or custodian)
Who Receives It	IRS and the IRA account holder	IRS and the taxpayer receiving the distribution
Filed When	When contributions are made (including prior-year contributions made by April)	When money is taken out of a retirement account
Commonly Includes	Contributions (Traditional, Roth, SEP, SIMPLE), rollovers, FMV, RMD info	Distributions, early withdrawal penalties, taxable amounts
Tax Filing Impact	Informational only; not filed with your tax return	Used to report income; must be included in tax return
Due to IRS By	May 31	January 31
Typical Box Items	Contribution amounts, rollover, FMV, RMD checkbox	Gross distribution, taxable amount, federal tax withheld