Let’s find a tax preparation office for you

or

Information regarding browser or device support

Oh no! We may not fully support the browser or device software you are using!

To experience our site in the best way possible, please update your browser or device software, or move over to another browser.

Close
IRS FORMS: 5498

Understanding Form 5498: Reporting Certain Retirement Plan Contributions to the IRS

Jo Willetts, EA Director, Tax Resources Published On February 05, 2021

Share

If you have a retirement plan where you have more control over the timing and amount of your contributions, such as a Roth IRA, you will receive a Form 5498 from the brokerage where you hold the account.

What is IRS Form 5498?

Form 5498 is an information form issued to owners of traditional and Roth IRAs, SEP (simplified employee pension), and SIMPLE (savings incentive match plan for employees) plans to report activity within these accounts. While predominantly known for reporting plan contributions, Form 5498 is also used to report Roth conversions and if any repayments were made to the account if you had prior distributions.

Additionally, Form 5498 reports the amount of required minimum distributions (RMDs) you withdrew during the year. The RMD must start by age 72 to avoid costly penalties. If you inherited the IRA, you are also subject to the RMD and the amount withdrawn will be shown on Form 5498.

You do not need to wait for Form 5498 to file your taxes since the form isn’t due until May.

If I have an employer-sponsored plan, will I receive Form 5498?

If you are contributing to an employer-sponsored retirement plan like a 401(k) or 403(b) plan, your contributions will be reported on your W-2 form issued by that employer. You will not receive Form 5498.

If you transfer your plan assets to a new employer’s account, commonly referred to as a rollover, the transfer will be reported on Form 1099-R with code “G” in Box 7. You will not receive Form 5498 unless your rollover contribution is made to an IRA, SEP, or SIMPLE plan.

Are the contributions reported on Form 5498 deductible?

The purpose of Form 5498 is to inform you that you made contributions to your IRA, SEP, or SIMPLE plan during the tax year, and whether you must begin receiving RMDs.

The amounts reported on Form 5498 may or may not be deductible depending on many factors including whether you or your spouse are covered by an employer-sponsored plan.

If Form 5498 reports a conversion, is it taxable?

A traditional IRA, SEP, SIMPLE, or 401(k) plan can be converted to a Roth IRA. If a taxpayer wishes to avoid taxes on their retirement income, the Roth is the way to do this.  

Form 5498 reports the converted amount. Income taxes on the deferred amount will be due at the time of the conversion, although there is no early withdrawal penalty for this action.

The event creates taxable income, although the taxable amount may not be explicitly stated on Form 5498. Determining the taxable amount is the responsibility of the plan owner and their Tax Pro.

About the Author

Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 25 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate.

Jackson Hewitt Editorial Policy

Related articles

Required Minimum Distribution Rules (RMDs) and Penalties

Required Minimum Distribution (RMD) Deadlines and Penalties

Normally, taxpayers are required to withdraw an annual minimum distribution amount from their IRAs or certain pension plans once they reach age 72 (after December 31, 2019).

View more

What You Need to Know About 1040 Tax Return Forms

A 1040 tax form is the main form for a tax return that gets filed with the IRS when you are a US citizen or resident with taxable income to report.

View more
Are You Eligible to Contribute to a Roth IRA in 2020?

Are You Eligible to Contribute to a Roth IRA in 2020?

The IRS recently announced its inflation-driven tax changes for 2020, and the IRA contribution limits are remaining the same. Individuals can contribute as much as $6,000 to their IRAs in 2020, with an additional $1,000 catch-up contribution allowed if the account owner is 50 or older.

View more

Why Jackson Hewitt®?

We see you

Our Tax Pros will connect with you one-on-one, answer all your questions, and always go the extra mile to support you.

We got you

We have flexible hours, locations, and filing options that cater to every hardworking tax filer.

We fight for you

We won't stop until you get every dollar you deserve, guaranteed. It's what we've been doing for over 35 years.