Q: I received all my 1099 tax forms in January/February. Why is Form 5498 being sent to me now?
A: Form 5498 is sent after April 15 (or, generally, the last day to file your 2014 income tax return without an extension) to ensure that all contribution amounts made to your retirement accounts in 2014, and 2015 which were designated for 2014, are accurately reported to you and to the IRS. Since federal tax law allows these designated contributions to be made during the period from January 1, 2014, through April 15, 2014, confirmation cannot be sent until after April 15. Federal tax rules require your financial institution to furnish this form to you no later than June 1, 2015.
Q: I already have filed my federal income tax return. Now that I have received the Form 5498, will I have to file an amended federal income tax return?
A: If the 2014 contribution amounts reported on your Form 5498 are the same as the contribution amounts you reported on your federal income tax return, there is no need to file an amended return. If the contribution amounts reported in Box 1, Box 2, Box 3, Box 4, Box 8, Box 9 or Box 10 of Form 5498 do not coincide with your records, contact your financial institution right away.
Q: If my rollover IRA contribution is neither deductible nor taxable, why is it shown on my Form 5498?
A: Reporting IRA rollover contributions to you and the IRS on Form 5498 confirms the portion of the distribution from your previous IRA or qualified employer plan that you have invested in a Your financial institution IRA. For your information, if any portion of a distribution from a previous IRA or qualified employer plan is not rolled over into another IRA or qualified plan within 60 days from when the distribution proceeds were received by you, that portion of the distribution is considered taxable. Any taxable amount of an IRA or qualified employer plan distribution should be reported on Lines 15b or 16b, respectively, of the 2014 Form 1040.
Q: I made an excess contribution to my IRA early last year for 2014 which I withdrew before my tax filing deadline. Why is this contribution still reported on Form 5498?
A: Federal tax rules require the withdrawal of excess contributions and accumulated earnings on these contributions (if any) to be reported on the 2014 Form 1099-R as a distribution. Reporting the amount of the 2014 contribution on the Form 5498 confirms to you and the IRS that this amount was in fact a contribution and, therefore, not subject to tax as a premature withdrawal or a normal distribution. Of course, any accumulated earnings are taxable for 2014 and should have been reported on Line 15b of your 2014 Form 1040.
Q: I made an excess contribution to my IRA for 2014 which I did not withdraw before my tax filing deadline. Must I report this to the IRS?
A: Yes. Any excess contributions included in Box 1 should be entered on Form 5329 [“Additional Taxes on Qualified Plans (Including IRAs) and other Tax-Favored Accounts”] separately for each participant.
Q: I made a nondeductible contribution to my traditional IRA for 2014. Should I have reported this to the IRS?
A: Yes. Participants should have reported any nondeductible contributions included in Box 1 on Form 8606 [“Nondeductible IRAs”]. For joint income tax returns, this form should have been completed separately for each participant.
Q: For 2014, I converted my Your financial institution traditional IRA account to a Your financial institution Roth IRA account. The amount transferred was previously included on my 2014 Your financial institution Form 1099-R. Why is it also included on my 2014 Your financial institution Form 5498?
A: The amount converted is treated as a taxable distribution (reported on Form 1099-R) from your non-Roth IRA and a conversion (reported in Box 3 on Form 5498) to your Roth IRA account. You should already have included the conversion amount on Form 8606 with the filing of your federal personal income tax return. Recharacterizations also are reportable on Form 8606.
Q: What are Required Minimum Distributions (RMDs)?
A: RMDs generally are minimum amounts that a retirement plan owner must withdraw annually starting with the year that he or she reaches 701⁄2 years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must generally begin once the account holder is age 701⁄2, regardless of whether he or she is retired.
A: Form 5498 is sent after April 15 (or, generally, the last day to file your 2014 income tax return without an extension) to ensure that all contribution amounts made to your retirement accounts in 2014, and 2015 which were designated for 2014, are accurately reported to you and to the IRS. Since federal tax law allows these designated contributions to be made during the period from January 1, 2014, through April 15, 2014, confirmation cannot be sent until after April 15. Federal tax rules require your financial institution to furnish this form to you no later than June 1, 2015.
Q: I already have filed my federal income tax return. Now that I have received the Form 5498, will I have to file an amended federal income tax return?
A: If the 2014 contribution amounts reported on your Form 5498 are the same as the contribution amounts you reported on your federal income tax return, there is no need to file an amended return. If the contribution amounts reported in Box 1, Box 2, Box 3, Box 4, Box 8, Box 9 or Box 10 of Form 5498 do not coincide with your records, contact your financial institution right away.
Q: If my rollover IRA contribution is neither deductible nor taxable, why is it shown on my Form 5498?
A: Reporting IRA rollover contributions to you and the IRS on Form 5498 confirms the portion of the distribution from your previous IRA or qualified employer plan that you have invested in a Your financial institution IRA. For your information, if any portion of a distribution from a previous IRA or qualified employer plan is not rolled over into another IRA or qualified plan within 60 days from when the distribution proceeds were received by you, that portion of the distribution is considered taxable. Any taxable amount of an IRA or qualified employer plan distribution should be reported on Lines 15b or 16b, respectively, of the 2014 Form 1040.
Q: I made an excess contribution to my IRA early last year for 2014 which I withdrew before my tax filing deadline. Why is this contribution still reported on Form 5498?
A: Federal tax rules require the withdrawal of excess contributions and accumulated earnings on these contributions (if any) to be reported on the 2014 Form 1099-R as a distribution. Reporting the amount of the 2014 contribution on the Form 5498 confirms to you and the IRS that this amount was in fact a contribution and, therefore, not subject to tax as a premature withdrawal or a normal distribution. Of course, any accumulated earnings are taxable for 2014 and should have been reported on Line 15b of your 2014 Form 1040.
Q: I made an excess contribution to my IRA for 2014 which I did not withdraw before my tax filing deadline. Must I report this to the IRS?
A: Yes. Any excess contributions included in Box 1 should be entered on Form 5329 [“Additional Taxes on Qualified Plans (Including IRAs) and other Tax-Favored Accounts”] separately for each participant.
Q: I made a nondeductible contribution to my traditional IRA for 2014. Should I have reported this to the IRS?
A: Yes. Participants should have reported any nondeductible contributions included in Box 1 on Form 8606 [“Nondeductible IRAs”]. For joint income tax returns, this form should have been completed separately for each participant.
Q: For 2014, I converted my Your financial institution traditional IRA account to a Your financial institution Roth IRA account. The amount transferred was previously included on my 2014 Your financial institution Form 1099-R. Why is it also included on my 2014 Your financial institution Form 5498?
A: The amount converted is treated as a taxable distribution (reported on Form 1099-R) from your non-Roth IRA and a conversion (reported in Box 3 on Form 5498) to your Roth IRA account. You should already have included the conversion amount on Form 8606 with the filing of your federal personal income tax return. Recharacterizations also are reportable on Form 8606.
Q: What are Required Minimum Distributions (RMDs)?
A: RMDs generally are minimum amounts that a retirement plan owner must withdraw annually starting with the year that he or she reaches 701⁄2 years of age or, if later, the year in which he or she retires. However, if the retirement plan account is an IRA or the account owner is a 5% owner of the business sponsoring the retirement plan, the RMDs must generally begin once the account holder is age 701⁄2, regardless of whether he or she is retired.
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