What is the 5498 Tax Form? Reporting Information, Common Mistakes, and More

When you contribute to an Individual Retirement Account (IRA), you’ll get an IRS 5498 tax form. It is an informational document that keeps records of all your contributions to the IRA.

However, numerous people in the US don’t know about retirement plans and are intrigued by “what is Form 5498?”

Hence, to keep my readers familiarized with the tax form 5498, I’ve put together essential information in the write-up. Additionally, you will explore who receives this document, what is reported in it, and common mistakes to avoid when dealing with it. 

What is the 5498 Tax Form?

The 5498 tax form is an informational document filed when you save for retirement with an Individual Retirement Arrangement (IRA). Taxpayers and the Internal Revenue Service (IRS) need this form to keep track of their contributions. 

As an account holder, you don’t really need to file the tax form; you just keep it for your personal records. The financial institution that manages your IRA account is required to report all contributions during a tax year to both you and the IRS.

The contributions include:

• Traditional IRAs
• Roth IRAs
• SEP IRAs
• SIMPLE IRAs

Note: If you’re making a non-deductible traditional IRA, you need to file Form 8606. 

Now, skim through the next section to understand what is reported on the Form 5498 taxes. It is critical to determine whether your contributions are filed accurately or not. Also, if you’re a small business owner using outsourced accounting or require services such as bookkeeping services you can see how proper record-keeping supports tax-form accuracy.

What is Reported on the 5498 Tax Form?

The IRS tax form 5498 reports contributions, rollovers, and conversions made to an IRA during the tax year. It helps the US government to monitor compliance with tax laws.

You can also check out the information mentioned below to calculate your tax liability and avoid penalties.

Box Number	Description	What it Reports
Box 1	IRA Contribution	Shows traditional and Roth IRA contributions you made for the tax year.
Box 2	Rollover Contributions	Include amounts transferred into the IRA from another eligible retirement account, like a 401(k).
Box 3	Roth IRA Conversions	Any funds converted from a traditional IRA or SIMPLE IRA to Roth IRAs or Roth SIMPLE IRAs.
Box 4	Recharacterized Contributions	Amounts recharacterized or moved between different types of IRAs.
Box 5	Fair Market Value (FMV) of Account	Total value of the IRA account at the end of the year.
Box 6	Endowment Contracts	Amount allocable to the cost of life insurance.
Box 7	IRA Type	It shows the type of IRA account (e.g., SEP, Roth, or Traditional).
Box 8 and 9	SEP and SIMPLE Contributions	Include funds made in the current tax year.
Box 10	Roth IRA Contribution	Shows contributions, including your income tax year in 2025 through April 15, 2026.
Box 11	Required Minimum Distribution (RMD) Information	It informs the IRS, and the IRA owner must take a RMD for 2025.
Box 12a (optional)	RMD deadline	Reports the RMD deadline to an IRA owner.
Box 12b (optional)	RMD Amount	Reports the RMD amount to an IRA owner.
Box 13a	Late Rollover Contribution	Amount of any postponed contribution made in 2025 for a prior year.
Box 13b	Late Contribution Year	Shows the year in which the postponed contribution was credited.
Box 13c	Applicable Code	Reports the code reflecting the reason for the late contribution.
Box 14a	Repayment of a Contribution	Amount related to a qualified disaster, reservist, birth or adoption, domestic abuse victim, or emergency personal expense.
Box 14b	Repayment Code	Shows the applicable repayment code for box 14a (e.g., QR, DD, or BA).
Box 15a	FMV of the Investments	Shows the FMV (fair market value) of the investments, like stock or real estate, in the IRA.
Box 15b	Code for Investment Types	Include codes for different types of investments (A- stock, B- short or long-term debt, etc.).

Tip: Always cross-check the numbers on your 5498 tax form with your own personal records of contributions and rollovers. If you handle more advanced services like year-end accounts services you’ll appreciate the importance of matching institutional reports with your internal bookkeeping.

Also Read: What is an Ad Valorem Tax? Definition, Reporting, and How It Is Assessed

What is a Form 5498-SA? 

Form 5498-SA is another IRS document that reports contributions to a health savings account. The contributions include a Health Savings Account (HSA), an Archer Medical Savings Account (MSA), or a Medicare Advantage MSA.

Like tax form 5498, it is filed by the financial institution to the IRS, and a copy is sent to you for informational purposes only. Therefore, you should double-check that the form is correct and save it with your tax records.

However, it is important to note that the Form 5498-SA is not submitted with your tax return, unlike the Medicare Tax.

Now, explore the information included in this tax form. You should also ensure that your record-keeping of health-savings contributions is as organised as your cash-flow management service setup.

• Contributions made for the prior tax year
• Rollover contributions
• The Fair Market Value (FMV) of the HSA or MSA account
• Type of account  

After acquiring information on “what is Form 5498 and 5498-SA,” you are all set to understand who receives the Form 5498. So dig deeper into the following section.

Who Receives the Form 5498?

You receive a 5498 tax form if you contributed to an Individual Retirement Account (IRA) during a tax year. The IRA trustee or custodian issues this form usually around May 31 (after the April tax filing deadline) because it allows you to make IRA contributions for the previous tax year until tax day.

Furthermore, if you contributed to more types of IRA accounts, you get multiple tax forms for each payment. For example, if you have a Traditional IRA account in one bank and a Roth IRA account in another bank, it’s apparent that you will receive separate forms for each account. If you’re running a new business and use an accounting service for startups you’ll want to integrate your retirement-plan reporting into your overall business accounting workflow, helping you avoid surprises with forms such as the 5498.

Also Read: Crypto Tax Calculator 2025: Benefits, Factors, and How a Cryptocurrency Tax Calculator Works?

What Should You Do with the Tax Form 5498?

You should remember not to file the 5498 tax form and keep it safe for accuracy, records, as a guide for tax return, and to track your basis for a Roth IRA. 

Let’s take a look at the following pointers to estimate what to do with the tax form 5498.

The tax form is for informational purposes only, so you’re not required to file it. Your financial institution handles the filing status with the IRS on its own.

You should carefully check all your contribution lists in the 5498 tax form to match your personal records. If you discover any discrepancy in it, immediately contact your IRA provider to correct the mistake.  

Moreover, you should keep the form copy with other tax documents safely. It helps you to verify your contributions in case of an IRS inquiry or audit.

While you do not file the form itself, you will use the information when preparing your tax return, especially for a traditional IRA deduction. It confirms the contribution amount your provider reported to the IRS and saves you from encountering Tax Topic 152.

If you have a Roth IRA account, you can use Tax Form 5498 to track your contributions over the years. This information is crucial if you need to take an early withdrawal because it helps you calculate the taxable portion of the distribution. If you’re leveraging full-service financial solutions (such as combining payroll, bookkeeping, and startup accounting) then connecting your retirement-form tracking with your back-office services like payroll accounting services can ensure your holistic financial compliance.

Also Read: Washington Sales Tax: Learn About Local and Washington Sales Tax Rate, Nexus Laws, and Filing Requirements

What are the Mistakes You Should Avoid in the 5498 Tax Form?

“Make sure that you do not file the 5498 Tax Form or Form 5498-SA with your tax return.” In order to avoid common mistakes when dealing with the IRS form, you should read the following reminders.

Here are the errors that the trustee should not make in filing the tax form 5498:

• Issuing duplicate forms can lead to penalties.
• Incorrect personal information
• Reporting your contributions for the wrong year.
• Failing to report a correct conversion from a Traditional IRA to a Roth IRA.
• Reporting an incorrect Fair Market Value (FMV).
• Missing RMD information, resulting in a 50% excise tax on the under-distributed amount.
• Your custodian report transfers as rollovers. 

Also Read: What is Receivables Financing? Why is Accounts Receivable Financing Important for Businesses?

The Bottom Line

The above-mentioned information helps you to understand what is tax form 5498. It is just an information document that keeps records of all contributions you made to the Individual Retirement Account (IRA) for retirement savings.

If you contributed to a Traditional IRA or a Roth IRA account, you should hire trustworthy and reliable tax professionals to file it on your behalf with the IRS. Additionally, you can utilize their expertise in filing other forms like the K1 tax form accurately and effortlessly.

Frequently Asked Questions

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