TurboTax / Tax Calculators & Tips / All Tax Guides / IRS Tax Forms / What Is IRS Form 5498: IRA Contributions Information?

What Is IRS Form 5498: IRA Contributions Information?

Updated for Tax Year 2016


OVERVIEW

Form 5498: IRA Contributions Information reports your IRA contributions to the IRS. Your IRA trustee or issuer - not you - is required to file this form with the IRS by May 31.


When you save for retirement with an individual retirement arrangement, you probably receive a Form 5498 each year. The institution that manages your IRA must report all contributions you make to the account during the tax year on the form. Depending on the type of IRA you have, you may need Form 5498 to report IRA contribution deductions on your tax return.

Form 5498: IRA Contributions Information reports your IRA contributions to the IRS. Your IRA trustee or issuer – not you – is required to file this form with the IRS by May 31. You won't find this form in TurboTax, nor do you file it with your tax return. The copy you receive in the mail is a copy for your records.

Understanding Form 5498

Form 5498 reports various types of IRA contributions you make in a number of reporting boxes. Box 1 shows the amount you contributed to a traditional IRA; box 9 reports the amounts contributed to a Savings Incentive Match Plan for Employees (SIMPLE) IRA and box 10 covers the amounts you put into a Roth IRA.

Although a rollover or conversion of assets from one retirement plan into an IRA isn’t deductible, they are considered contributions and will be reported in boxes 2 and 3 of Form 5498. However, direct trustee-to-trustee transfers from a traditional IRA to another traditional IRA or to a SEP IRA, a SIMPLE IRA to another SIMPLE IRA, a SEP IRA to another SEP IRA or to a traditional IRA or a Roth IRA to another Roth IRA are not reported on Form 5498. If you’re unsure what type of IRA you have, your account administrator may indicate whether it’s a traditional, Roth, SIMPLE or a Simplified Employee Pension (SEP) in box 7.

Traditional IRA contributions

With a traditional IRA, you can make tax deductible contributions to the account and accumulate earnings within the IRA tax-free until you are required to begin making withdrawals - usually in the year you turn 70 1/2. When you start taking withdrawals, you then need to report the gross amounts as income on your tax return and pay the appropriate amount of income tax, if necessary.

There are limits on the amounts reported in box 1 of Form 5498 that you can deduct each year. Each year, the tax law imposes a maximum contribution amount that all taxpayers are subject to. However, if you’re covered under another tax-advantaged retirement plan at work or your spouse makes contributions to a different IRA account, you may not be eligible to take the full contribution deduction.

IRA deadline

The great thing about a traditional IRA is that, even if you make contributions in the following tax year, the IRS lets you take a deduction for some of these IRA contributions on your prior-year tax return (you must make the contributions by mid-April). In other words, if you are filing your 2016 taxes, the contributions you make to a traditional IRA through mid-April of 2017 may be deductible. This is why your account administrator has until May 31 to send Form 5498 to you.

Roth IRA contributions

Saving with a Roth IRA has some tax advantages, but you cannot use your contributions as a tax deduction. The reason that contributions to a Roth IRA aren’t deductible is because the withdrawals you make during retirement aren’t taxable.

However, you may be able to take the saver’s tax credit for some of those Roth IRA contributions (and traditional IRA contributions) reported in box 10 of Form 5498 if your income is below certain levels and you satisfy other requirements.

SIMPLE & SEP Plans

If you participate in a SIMPLE IRA at work, your employer can withhold contributions directly from each of your paychecks on a pretax basis, meaning income taxes are calculated on your salary only after reductions for your contributions. In this case, you cannot deduct the contribution amounts reported in box 9. When your employer uses an SEP plan instead, only your employer can make contributions to your IRA account, so the amounts you see in box 8 of Form 5498 aren’t deductible to you.

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$34.99*
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
  • TURBOTAX ONLINE/MOBILE

  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/1040A + 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 in March. Special discount offers may not be valid for mobile in-app purchases.
  • QuickBooks Bonus Offer with TurboTax Self-Employed: File your 2016 federal return with TurboTax Self-Employed by 4/18/17 and receive a complimentary subscription to QuickBooks Self-Employed until 4/30/18 at no additional cost. After you file your taxes, you must activate your QuickBooks Self-Employed subscription by 7/15/2017 by logging into QuickBooks Self-Employed via mobile app or at https://selfemployed.intuit.com/login. Once activated, you will have access to QuickBooks Self-Employed until 4/30/2018.
    Offer valid only for new QuickBooks Self-Employed customers.
    • When you use TurboTax Self-Employed to file your 2017 taxes, you will have the option to renew your QuickBooks Self-Employed subscription. If you do not file with TurboTax Self-Employed by 4/30/2018, your QuickBooks Self-Employed subscription will automatically renew on 5/1/2018 for another year at the then-current annual subscription rate. You may cancel your subscription at any time from within the QuickBooks Self-Employed billing section.
  • Pays for itself: In order to pay for the price of TurboTax Self-Employed, you will need at least $600 in deductible business expenses. This calculation is based on the self-employment tax income rate for tax year 2016.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary.
  • Pay for TurboTax out of your federal refund: $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • TurboTax Expert Help, Tax Advice and SmartLook: Included with Deluxe, Premier and Self-Employed (via phone or SmartLook); not included with Federal Free Edition. Feature availability varies by device. State tax advice is free. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2015 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • CompleteCheck: Covered under the TurboTax accurate calculations and maximum refund guarantees.
  • TurboTax Self-Employed Expense Finder: Available only in TurboTax Self-Employed. Not available for people with certain types of expenses and tax situations including paying contractors or employees, home office or vehicle actuals, inventory, self employed health insurance or retirement, asset depreciation, sale of property or vehicles, and farm income. Some financial institutions limit the timeframe for which historical transactions may be imported by ExpenseFinder. ExpenseFinder expected late January (late February for mobile app).
  • TURBOTAX CD/DOWNLOAD SOFTWARE

  • 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 e-filing state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected in March. Prices subject to change without notice.
  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary.
  • Pay for TurboTax out of your federal refund: $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 TurboTax Business.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice via phone is included with Premier and Home & Business; fees apply for Basic and Deluxe customers. State tax advice is free. 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 2015 TurboTax products.
  • Data Import: Imports financial data from participating companies. Quicken and QuickBooks import not available with TurboTax installed on a Mac. Imports from Quicken (2015 and higher) and QuickBooks Desktop (2011 and higher); both Windows only. Quicken import not available for TurboTax Business. Quicken products provided by Quicken Inc., Quicken import subject to change.