It’s that time of the year again….. Tax Day has finally passed, as Americans breathe a collective sigh of relief.
But wait- an official looking envelope arrives in the mail. A Form 5498 is inside. Don’t panic!!!
This is a friendly reminder to all clients that the Form 5498 is NOT a tax document. Your accountant does not need it, it is informational only.
What is the Form 5498?
If you have an individual retirement account (IRA), your account’s trustee or issuer must report your contributions and any IRA distributions each year to the IRS. The information is submitted on Form 5498, and your trustee will send you a copy. You will most likely receive the form in the mail in late May.
Does this form affect my taxes at all?
Nope. The copy of the Form 5498 you receive is only for your information and personal records. Do not attach it to your tax return. There are no tax consequences until distributions are made from your account.
What information does the Form 5498 provide?
- Traditional IRA contributions for the prior tax year
- Distributions from the IRA, including Required Minimum Distributions
- December 31st (year-end) dollar value of the prior year
So when you receive that form in the mailbox, rest assured… all is well.
Disclaimer: Cambridge does not provide tax advice.