IRS Form 5498, IRA Contribution Information, is used by financial institutions to report contributions, rollovers, and other transactions related to Individual Retirement Accounts (IRAs). Unlike most tax forms that are due in January, Form 5498 is typically sent to account holders in May.
Reasons Why Form 5498 Is Sent in May
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Contributions Can Be Made Until April 15
- The IRS allows contributions to an IRA (Traditional, Roth, SEP, or SIMPLE) to be made up until the tax filing deadline (April 15) for the prior tax year.
- Since contributions made from January to April can still count toward the previous tax year, the IRS gives financial institutions extra time to report all contributions accurately.
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It’s for Reporting, Not Filing Taxes
- Unlike Forms W-2 or 1099, which report taxable income, Form 5498 does not need to be filed with your tax return.
- It is for informational purposes only and does not impact your ability to file your tax return before receiving it.
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It Confirms IRA Transactions
- Form 5498 reports:
- Contributions (Traditional and Roth IRAs)
- Rollover contributions (from another retirement plan)
- Fair market value (FMV) of the IRA
- Required Minimum Distributions (RMDs) (for individuals over 73)
- Even though RMDs are due by December 31, some account holders delay taking their first RMD until April 1 of the following year, so reporting may be delayed.
- Form 5498 reports:
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Does Not Affect Refund Timing
- Since Form 5498 is informational, it does not delay your tax refund or require you to amend your return unless you misreported contributions.
What Should You Do If You Receive Form 5498 in May?
- Review it for accuracy – Make sure the contributions or rollovers match your records.
- Keep it for your records – You don’t need to file it with your taxes, but it helps track IRA contributions.
- No action needed unless there’s an error – If incorrect, contact your financial institution to correct it.
