Tax form 5498 is used to report the fair market value of IRAs.
Generally speaking, clients can expect to receive a tax form 5498, if (this is not an exhaustive list):
- You contributed is an IRA
- You rolled over assets from a qualified retirement plan, such as a 401(k), to an IRA
- You initiated an indirect rollover over from one IRA to another IRA
- Or your recharacterized contributions to an IRA
- You will also get a 5498 if you are required to take a Required Minimum Distribution
- For Inherited IRAs, an IRS Form 5498 is generated for the deceased and the beneficiary
These tax forms are mailed in May, purposely after the April tax filing deadline to allow the forms to capture any IRA contributions made in the current year for the prior tax year. Form 5498 is only for your records and does not to be filed with the IRS. Institutions will send this information directly to the IRS for you.
Please note: this information is strictly to help assist in preparation to file taxes. Specific questions should be directed to a tax professional or visit the IRS.gov website.
If you are interested in future Tax Planning, check out the services we offer here: https://www.planningforgood.financial/tax-planning