The Importance of IRS Form 5498

And what you need to know about it.

If you contributed to your IRA this past year, you should have received an IRS Form 5498. This form looks similar to a W-2, but it only contains information about your IRA contributions, rollovers, conversions, and required minimum distributions.

If you have a traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, or deemed IRA, you should receive a 5498 Form.

Why is this form important?

Form 5498 is important because it details information about your IRA from the last year. Because there are IRA regulations, the IRS has to ensure that the information you’re reporting on your taxes is the same amount your IRA trustee reports.

Without this form, you may not correctly calculate the tax deductions to take for the previous year. If the deductions you report don’t align with the contributions your trustee reports, the IRS could contact you and request more information and proof of your deductions.

How do you receive this form?

Like a W-2, you should receive Form 5498 without having to request it. While a W-2 comes to you via your employer, a 5498 Form comes to you via the trustee or custodian of your IRA.

Your IRA trustee has until April 15th to send you this form, so you might not see it at the beginning of the year.

What do you do with the form?

You don’t need to do much with this form. You don’t need to request it, you don’t have to file it with your taxes – you just need to use the form to calculate your income tax deductions as they relate to your IRA contributions. You should keep this form for your records though, in case you're ever audited.

If you see the information provided by your trustee doesn’t match your records, contact your IRA trustee or custodian to clear this up.

If this is the first year using this form and you need help or have questions, contact the office.

Bellevue Financial Advisors helps women who take the lead in their family finances to live confidently, knowing that they are financially Put Together – that they are making the next right move, and are on track to turn their money into lasting wealth.

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^{This communication is designed to provide accurate and authoritative information on the subjects covered. It is not however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.}