Americans who are saving up for their retirement are required to report their contributions to the IRS with Form 5498.
By making contributions to an IRA, you will receive Form 5498 for your taxes annually.
This is because your IRA is required to report any contributions you made throughout the year to the IRS.
There are different types of retirement accounts, so depending on your IRA and what it is, you might need Form 5498.
What does Form 5498 report to the IRS?
Marca reports that according to Turbotax, the rollover or conversion of assets from one retirement plan into an IRA is not deductible.
Despite this, they’re considered contributions and must be reported to the IRS with Form 5498.
Data reported includes
- How much you contributed to your traditional IRA
- How much you contributed to a Savings Incentive Match Plan for Employees IRA
- The amount you contributed to a Roth IRA
What does Form 5498 NOT report to the IRS?
- Transferring a traditional IRA to another traditional IRA or SEP IRA
- Transferring a SIMPLE IRA to another SIMPLE IRA
- The transfer of a Roth IRA to another Roth IRA
- Trustee to trustee transfers