IRS Form 5498 Reporting
An IRA sponsor (i.e., custodian or trustee) has the responsibility to report certain IRA information to the IRS and to the IRA holder (owner or beneficiary). IRS Form 5498, IRA Contribution Information, must be filed with the IRS for each IRA plan maintained by the IRA holder. The IRA sponsor must file the 2021 Form 5498 with the IRS by May 31, 2022.
Reporting IRA Contributions
The 2021 Form 5498 reports 2021 contributions made to Traditional and Roth IRAs (including Traditional IRA and Roth IRA contributions timely made in 2022 for 2021). For SEP and SIMPLE IRAs, report contributions received in 2021 by the IRA sponsor (regardless of what tax year the contributions are designated for) on the 2021 Form 5498. Also, report all recharacterizations, Roth conversions, and any funds rolled over into the IRA plan (including funds rolled over from a workplace retirement plan) that were received in 2021. If the IRA owner corrected an IRA contribution (e.g., removed an excess contribution or recharacterized a contribution), still report the original contribution amount on Form 5498. In addition to reporting contributions, the 2021 Form 5498 is also used to report the December 31, 2021, fair market value (FMV) of the IRA.
Only one Form 5498 is filed for each IRA plan within that financial organization; do not file a separate form for each investment under the same plan. For example, if an IRA owner has three certificates of deposit (CDs) held in one Traditional IRA, only one 2021 Form 5498 should be filed for that Traditional IRA plan reporting all 2021 contributions and the combined FMV of all three IRA CDs. For an IRA owner who is age 72 or older in 2022 and, therefore, required to take a 2022 lifetime required minimum distribution (RMD), the IRA sponsor needs to check the box in Box 11, “Check if RMD for 2022” on the 2021 Form 5498. The IRA sponsor can, by January 31, send a copy of the Form 5498 to the IRA owner, with the RMD information in Boxes 12a and 12b, or provide the RMD information to the IRA owner on a separate statement to satisfy the January RMD notification requirement.
Reporting to IRA Holder
The IRA sponsor must also send the information on Form 5498, or substitute form, to the IRA holder. The IRA sponsor may have already satisfied this requirement via the annual IRA statement, which would have been sent to IRA holders by January 31, 2022. If no additional 2021 contributions were made between January 1, 2022, and April 18, 2022 (April 19, 2022, for residents of Maine and Massachusetts), and the IRA statement sent to the IRA holder in January of 2022 contains a legend designating which information is being filed with the IRS, the IRA sponsor does not need to furnish the 2021 Form 5498 to the IRA holder by May 31, 2022. However, the IRA sponsor must still file Form 5498 with the IRS by May 31, 2022.