What is Form 5498, and why did I receive it so late?

Ah, April 16. Tax season is finally over. Federal, state, and local, you’ve filed them all. No more forms, no more stress, no more TurboTax commercials.

And then—what’s this? Sandwiched between a wedding invite and a flyer about free solar panels, a myste­rious letter from the IRS.

You double-check and sure enough, that’s your name and address. With a deep breath and an impending sense of doom, you open the parcel. Your eyes lock onto the ominous heading: Form 5498.

“Did this get lost in the mail?” you ask aloud. “Can they hold that against me? Am I going to have to amend my return?”

Well, we’re here to assure you that you have nothing to fear. Form 5498 reports infor­mation about IRA contri­bu­tions, rollovers, conver­sions, and required minimum distri­b­u­tions (RMDs). And because IRA contri­bu­tions can be made up until Tax Day, you might receive Form 5498 after April 15.

When you receive Form 5498, simply verify the infor­mation is correct and keep it for your records. Your custodian will submit a copy of Form 5498 to the IRS by the May 31 deadline.

If you do receive Form 5498, here’s what to look for.

Key boxes on Form 5498

Box 1: All IRA contri­bu­tions for the tax year are totaled in this box. (They’ll be broken out later in the form.)

Box 2: Reports rollover contri­bu­tions. Remember, the IRS ruled in 2015 that only one rollover is permitted within a 12-month period. Direct transfers from one IRA to another are not reportable and therefore do not generate Form 5498.

Box 3: Reports conver­sions to Roth IRAs.

Box 7: Notes the type of IRA.

Box 8: Shows total contri­bu­tions to a SEP account.

Box 9: Shows total contri­bu­tions to a SIMPLE IRA.

Box 10: Shows total contri­bu­tions to a Roth IRA.

Box 11: Reports whether an RMD is required for the year in which the form is received. Any RMD taken last year was reported earlier on Form 1099‑R.

It’s important to know that Form 5498 reports contri­bu­tions by the tax year they were made, not the calendar year in which they were contributed. Custo­dians of all types of IRAs—traditional, Roth, SEP, and SIMPLE—use this form for reporting.

Also worth noting: Form 5498 does not report whether a contri­bution is deductible or non-deductible. The deductibility is deter­mined on your tax return.

So next time an unexpected letter arrives from the IRS after you’ve already filed, remain calm. There’s a good chance it’s Form 5498.

Origi­nally Posted: May 10, 2016