Extension filers: Only left to file your taxes by October 17
Hide Arrow

TurboTax / Tax Calculators & Tips / All Tax Guides / IRS Tax Forms / Video: How to Use IRS Form 5498 on a Tax Return

Video: How to Use IRS Form 5498 on a Tax Return

Updated for Tax Year 2015


Did you put money into an IRA this year? What about a Roth IRA? Watch this video to answer your questions about retirement savings and how they affect your taxes.

Hello, I’m Tammy from TurboTax with some information for taxpayers who put money into an individual retirement arrangement.

Did you put money aside for your retirement this year into an IRA account?

If you did, you may be able to deduct some of those contributions on your federal tax return. When you make contributions to an IRA, it’s likely that you will receive a Form 5498 from the organization that manages your retirement account. It may appear to be confusing at first, but for purposes of figuring out your deduction—you don’t need to focus on every piece of information reported on the form. But before we even get to the important boxes on your 5498, you should first understand the difference between a traditional IRA and a Roth IRA.

With a traditional IRA,a certain amount of the contributions you make each year may be tax deductible. However, when you reach retirement age, you must report all IRA withdrawals on your tax return and pay the tax on it.

With a Roth IRA it’s the opposite. Your contributions aren’t deductible on your tax return, but the tax savings come later. This type of account allows you to make contributions using after-tax dollars— meaning that you already paid tax on the money you use to make the contribution. But when you start making withdrawals during retirement, those withdrawals are tax free and you don’t have to pay taxes on them.

Keeping the differences between the IRAs in mind, you will be most interested in the amounts reported in boxes 1 and 10 of your Form 5498. Box 1 reports the total amount of contributions you made to a traditional IRA— which might be deductible on your tax return, depending on other factors, like your income. The amount in box 10, however, reports the contributions you made to a Roth IRA, so you can’t deduct this amount.

Your 5498 will also report other types of information, which may or may not be important for purposes of filing your tax return this year. This includes the fair market value of your retirement account, amounts you convert or rollover from one type of retirement account to another and information about minimum distributions you must take from the account in order to avoid excessive taxes.

Remember, when you use TurboTax to file your tax return, we’ll ask you simple questions and let you know exactly how much, if any, of your retirement contributions are tax deductible.

Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99*
Start for Free

Looking for more information?

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

Security is built into everything we do
Here's how
* Important Offer Details and Disclosures
  • Filing Deadline: IRS filing deadline for tax year 2015 is April 18, 2016 (except for residents of Massachusetts or Maine, where the IRS filing deadline for tax year 2015 is April 19, 2016).
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/A + Free State offer only available with TurboTax Federal Free Edition; Offer may change or end at any time without notice. Actual prices are determined at the time of print or e-file and are subject to change without notice. Savings and price comparisons based on anticipated price increase expected 3/18/16. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected 3/18/16. Prices subject to change without notice.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice. This benefit is available with TurboTax Federal products except the TurboTax Home & Business/QuickBooks Self-Employed bundle offers.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice service is available via phone for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Not available for TurboTax Business customers.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2014 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.