How Do You Handle IRS FORM 5498

[jazz4cash]

I have IRA's at a handful of institutions and I get 5498 Forms that I mostly ignore. I get one form for each of my MYGAs even though they are all with the same provider. I know the FMV is significant wrt RMD calculation but other than that I don't know how to use these forms which are haphazardly tossed in random folders. I have no basis in my IRAs. Will I regret not managing them more deliberately in the future?

 

[Dtail]

I just received my 5498's from Fidelity (online). Since they are not needed for calculating taxes, I just print them and put in the tax folder with no further action.

 

[audreyh1]

You don’t need to do anything with 5498. It notifies the IRS of your end of year IRA account values. Once you are subject to RMDs it can serve as a check for the IRS.

 

[Bruno]

What i don't understand this year I got a 5498 for my Roth LAST year was a 5498 for my IRA account. Why don't you get one for BOTH each year?

 

[Dtail]

What i don't understand this year I got a 5498 for my Roth LAST year was a 5498 for my IRA account. Why don't you get one for BOTH each year?

I received one for each account. Not sure why not for you.

 

[rk911]

My wife and I have not seen a 5498 in years. I track our IRA's and reconcile the monthly bank statements against our Quicken accounts. I base our RMDs on the year-end value in our account statements.

 

[cathy63]

What i don't understand this year I got a 5498 for my Roth LAST year was a 5498 for my IRA account. Why don't you get one for BOTH each year?

You can check the instructions for Form 5498 to see when the custodian is required/not required to issue the form. Also, they are not always required to send it to you even if they do have to send it to the IRS, so just because you didn't get it doesn't mean it doesn't exist.

 

[TheWizard]

I generally put any 5498 forms in the sack for recycling junk mail.
It works for me...

 

[itsme2]

I believe the reason that they issue you Form 5498 is to inform IRS, instead of informing you. Because technically, your IRA contribution cannot exceed your taxable compensation (i.e. Box 1 of your W-2).

 

[SecondCor521]

The other use for 5498s is to establish Roth contribution basis for those who might use a Roth conversion ladder.

Because you are able to withdraw Roth contributions before 59.5 without tax or penalty, the IRS needs some way to track your Roth contributions in order to enforce that limit.

Whether they actually enforce the rule I'm not really sure and I won't need to find out. But having the 5498s on hand could be helpful in that situation.

 

[engineernerd]

What i don't understand this year I got a 5498 for my Roth LAST year was a 5498 for my IRA account. Why don't you get one for BOTH each year?

I seem to only get them for years when I made contributions. For example, when I did a Roth conversion I got one for my Roth IRA (and a 1099 for the tIRA the money came from).

 

[audreyh1]

My wife and I have not seen a 5498 in years. I track our IRA's and reconcile the monthly bank statements against our Quicken accounts. I base our RMDs on the year-end value in our account statements.

We used to get one for each IRA even in non-contribution years, but Fidelity stopped providing them to us many years ago. We don’t really need to see them until each of us reaches RMD age.

If you are with Fidelity, sounds like they don’t provide them even then. Hmmmm.

 

[Bruno]

We used to get one for each IRA even in non-contribution years, but Fidelity stopped providing them to us many years ago. We don’t really need to see them until each of us reaches RMD age.

If you are with Fidelity, sounds like they don’t provide them even then. Hmmmm.

Yes I am with Fido and its my first year getting RMD. I did read you don't get a 5498 form for the years you don't make a contributions. I guess file what I get and move on. Thanks to all for the reply's!!

 

[COcheesehead]

With Fidelity. I get one for each IRA and Roth account and also our HSA’s.