All About IRS Form 5498

An Overview of 5498 Series

When the employers decided to not provide any retirement benefits plan to their employees, they can individually open an IRA account and make contributions on their own. IRS also providing the tax break for the individuals who contribute to these savings accounts. These accounts will be managed by the respective third party providers who offer IRA plans to the individuals.

The third party providers here may be an IRA or any other benefits provider or the other financial institutions which manages individuals retirement benefits plan.

If any organization that paid an amount or interest for whom they maintained the individual retirement arrangement (IRA) including a deemed IRA under section 408(q)., or other savings accounts are responsible for reporting the distribution made to the IRA account with the IRS.

These settlements can be reported through the 5498 Forms. A copy of the same has to be sent to the respective individuals who contribute to their savings accounts.

There are three variants of 5498 Form available which will vary based on the account type. Let’s see each in detail.

Form 5498 - IRA Contribution Information

File 5498 form for any individuals for whom you maintained any individual retirement arrangement (IRA) such as Traditional, Roth, SEP, Simple including a deemed IRA under section 408(q).

IRA trustee or issuer is required to file this Form with the IRS & copies must be sent to all the types of IRAs participants by June 30th, and if the reporting is related to FMV & RMD account, then the copies must be sent to participants
before February 1st.

If you are a bank or other financial institution, you need to provide the trustees/participants details, IRA contribution information such as Rollover contributions, SEP, Roth IRA conversion amount, the Fair Market Value & even more on Form 5498.

Form 5498-SA - HSA, Archer MSA, or Medicare Advantage MSA Information

If you manage a health savings account such as Archer Medical Savings Account (Archer MSA), Health Savings Account (HSA), and Medicare Advantage MSA (MA MSA), you must
file Form 5498-SA.

This form reports the annual distribution to these accounts and you need to provide the trustees/participants details, along with the Contributions made and Fair market value. The form must be filed with the IRS by June 30, and a copy must be sent to contributors before June 30.

Learn more about Filing Form 5498-SA

Form 5498-ESA - Coverdell ESA Contribution Information

You must file the 5498-ESA form if you handle the Coverdell Education Savings Accounts. This account is used as a long-term investment to raise money for a children’s education.

This form reports the annual distribution made to these accounts, and the form must be filed with the IRS by June 30. The copies must be sent before june 30.

You need to provide the trustees/beneficiary details, Contribution made for Coverdell ESA, Rollover contribution.

Learn more about Form 5498-ESA.

Preferable Filing Methods to File 5498

IRS prefers filing 5498 electronically rather than filing with paper. You can avoid a bunch of paper works, and overcome the issues in manual errors while filing electronically. You could save more time and focus on your business as the filing takes only a few minutes to complete. Also, filing electronically provides the IRS acceptance status within a few minutes after transmitting your return.

Deadline to file Form 5498

Usually, the deadline to file Form 5498 is May 31.

• The due date for the participants for other types of IRA (except FMV and RMD) is June 30, 2023.
• The e-filing deadline for Form 5498 is June 30, 2023
• The e-filing and furnishing due dates for the other Forms 5498-SA and 5498-ESA are also June 30, 2023

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