What Does IRS Form 5498 Report?
If you own an IRA (including an inherited IRA), you should receive an IRS Form 5498 every year that a reportable event took place. IRA custodians use this form to report IRA contribution activity to the IRS and IRA owners. You may already know how much you have contributed to your IRA for the year, but there is more information on these forms than just annual contribution amounts.
It’s important to review your Form 5498 when you receive it to ensure all the information on the form is correct and matches the amounts you claimed on your tax return. The IRS will be doing the same.
In addition to annual contributions made to Traditional and Roth IRAs, Form 5498 reports
- Rollover contributions
- SEP plan employer contributions
- SIMPLE IRA plan employee and employer contributions
- Recharacterized IRA contributions
- Roth IRA conversion contributions
- The fair market value of the IRA as of December 31 of the prior year
- The value of certain types of alternative investments held within the IRA
- Whether a required minimum distribution (RMD) is due for the year (the dollar amount may be included)
- Repayments you have made of any qualified reservist distributions, qualified disaster distributions, coronavirus-related distributions, and qualified childbirth and adoption distributions
When Will I Receive IRS Form 5498?
- STRATA will file IRS Form 5498 with the IRS and make a copy of your form available to you (either online or paper, based on your communication preference) on or before May 31.
- This allows STRATA time to record any contributions, rollovers, conversions, or recharacterizations made to your IRA up to the current year's tax filing deadline (IRS Notice 2021-21).
Do I Need to File IRS Form 5498 With My Tax Return?
- No, IRS Form 5498 is for informational purposes only. Please note that when you rollover funds to STRATA, it is a nontaxable event. In addition, making any allowable contributions to your IRA is also a nontaxable event. You are not required to file an IRS form 5498 with your tax return; however, you may want to provide a copy to your tax preparer.