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Form 5498

I received a form 5498 for 2022.  In 2022 I converted part of my traditional IRA to my Roth IRA.   I had taxes withheld from the conversion so the total removed from my IRA was greater than the amount deposited to my Roth.   The 5498 shows the after tax amount.  Is the correct?    It seems like this should be correct because that is the amount actually deposited in the Roth.    Since this was not a RMD should I expect a 5498 for the traditional IRA or does the 1099-R I received earlier in the year suffice?

4 Replies

Form 5498

the 1099-R suffices for your TRAD IRA rollover. 

 

The 5498 is to be used in the future to determine whether any distributions from the Roth are subject to income tax (the earnings) or 10% penalty (if under 59.5 years old).

 

Once you are over 59,5, there can not be a 10% penalty on any part of a Roth distribution.

Once you are over 59.5 AND any ONE of your Roth accounts has been opened for 5 calendar years, there can not be tax on any earnings withdrawn.

Form 5498

Form 5498 is used to track contributions only.   You should get a form 5498 from the traditional IRA if you made contributions in 2022.  However, you should already have reported those contributions on your 2022 tax return from your own records (if you made contributions).  If you made no contributions to the traditional IRA you wont get a form 5498 for that account.  The 1099-R reports the distribution, which you used as a conversion.

 

The form 5498 for the Roth IRA shows any funds going into the Roth IRA for calendar year 2022, that includes conversion amounts but also would include regular contributions.  Form 5498 is sent for your information, it does not change your tax return.  If you are under age 59-1/2, you need to know how much money in your Roth IRA was from regular contributions and how much was from conversions, and the date of each conversion, because this affects whether or not you pay a 10% tax for withdrawing converted amounts in less than 5 years.  

dmertz
Level 15

Form 5498

The IRA custodian is required to provide you with the year-end Fair Market Value of the traditional IRA, but in the absence of any contributions the to the traditional IRA for the year, the traditional IRA custodian is permitted to provide you with the FMV on your year-end statement rather than providing you with a Form 5498.  The IRA custodian still files Form 5498 with the IRS to provide the IRS with the FMV.

Form 5498

Thanks to all that replied

 

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