Tax Year Prior to 2020: 1099-R and Form 5498

[macuser_22]

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@380812540 wrote:

I need to include a form 5498 on my tax return.  It is not available in Turbotax.... 

What is my solution?   This form states that the 1099 filed in association with it does not require

taxes to be paid on the distribution.

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The form 5498 is information only to you and does not go on a tax return.   It it is for the financial institution to report to the IRS any transactions and other information and they send you a copy for your records.  Anything that is on the form that needs reporting on your tax return is entered in the 1099-R or IRA contribution section.

[DoninGA]

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@380812540 wrote:

I need to include a form 5498 on my tax return.  It is not available in Turbotax.... 

What is my solution?   This form states that the 1099 filed in association with it does not require

taxes to be paid on the distribution.

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An IRS Form 5498 is an informational form only and it not entered anywhere on a tax return.

[VolvoGirl]

The 5498 shows info for money coming into a IRA, etc.   Like from a transfer, rollover or new contribution.   You only enter the 1099R for money going out like a distribution or to another account.

  The 1099R will have a code in box 7 that tells what kind of transaction it is for.   And Turbo Tax will ask what you did with it when you enter the 1099R.  There will be several follow up questions if it needs to determine if it is taxable and how much.

If you got a 1099R what code is in box 7?   Why did you get a 1099R?

[rthornett]

In 2021 my wife and withdrew funds from our Vanguard IRAs in order to settle on the purchase of a new home, and shortly thereafter  deposited a great portion of the funds back into the IRA's after the sale of a property we owned.  We have 1099-R forms for the distribution of the funds we withdrew and will receive Form 5498 for the rollover of the funds we put back into the IRAs.  Pls provide intuit/Turbotax guidance on how to show theses transactions and the resulting net IRA distribution. 

[VolvoGirl]

You don't enter the 5498.   That is just for your info.  Just enter the 1099R.   After you enter the 1099R it will ask what you did with it.   Say you rolled it over and enter the amount you put back within 60 days.

[jlbobhunter]

Where do I enter the $s on above form. I failed to withdraw required withdrawal and I understand I will need to pay a fine but where do I make the entry?

[DianeW777]

The penalty is calculated on Form 5349 and will self generate when you answer the questions about your Form 1099-R. If possibly in your case you do not have a Form 1099-R because you did not take the required minimum distribution (RMD) then will add the form to your return.  

The Form 5498 is not a part of the tax return, rather it is for information about what has transpired with your account during the tax year and a required filing rule by the IRS.  You receive a copy as well.

You must include form 5329 when you e-file and Unfortunately this can only be done using the "Forms" mode which is only available with TurboTax CD/Download if you do not have a 1099-R to file.

You can change to TurboTax Basic CD/Download if you choose.

• How to switch from TurboTax Online to TurboTax CD/Download?

Once this is completed here are the steps to add Form 5329 to your return.

1. Enter the forms mode and click on open form (left). Type in 5329.
2. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return)
3. Scroll down to Part IX line 52 and enter the RMD amount that should have been taken.
4. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
5. Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

[nickplace]

My old company went bankrupt, i received a 1099-R, and the gross distribtion is showing as income on my Turbo tax even though it was rolled over to an IRA . I have the 5498 form from the institution showing this, but Turbo tax isn't allowing me to enter in the 5498. I'm using the Deluxe turbo tax. Do I need to upgrade? this is rediculous. 

[DoninGA]

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@nickplace wrote:

My old company went bankrupt, i received a 1099-R, and the gross distribtion is showing as income on my Turbo tax even though it was rolled over to an IRA . I have the 5498 form from the institution showing this, but Turbo tax isn't allowing me to enter in the 5498. I'm using the Deluxe turbo tax. Do I need to upgrade? this is rediculous. 

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After you completed entry of the 1099-R one of the following screens would have asked if you moved this money to another or the same retirement account.  Go back through the 1099-R section and select this option.

[P_Carl]

The 5498 is not due out until mid May due I have to have the 5498 in hand to file my taxes when I know what was taken out and what was returned. 

[JulieS]

You don't have to have the 5498 with the return as long as you know what is on it when you file. If you aren't sure, you can ask you trustee or broker for the information. 

You also have the option of filing for an extension, so that you can wait to see the 5498 form before you file your return. 

Click here for more information about filing an extension in TurboTax.

[Mgibb]

Why does TurboTax ask for information from 5498 when it is not required?  

When I enter the fair market value of my IRA as of December, 2022, my anticipated refund is decreased substantially.  Why is this when that figure only impacts tax for 2023?

[LindaS5247]

Is this a ROTH IRA?

If your balance due increased/refund decreased when you entered your Roth IRA contributions, that probably indicates that you have exceeded the contribution limit for Roth IRAs based on your income and the contribution is being taxed as an excess contribution.

Go back through the section of your return where you entered the Roth contributions and be sure to go through each screen.  TurboTax will indicate if you have an excess contribution that needs to be removed. 

For Traditional IRAs keep in mind that your deduction may be reduced if you or your spouse are covered under retirement plans at work.

• Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.
• No retirement plan at work: Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.

These charts show the income range in which your deduction may be disallowed if you or your spouse participates in a retirement plan at work:

If you made a Traditional or Roth IRA contribution, you'll enter the amount by clicking on the Federal Taxes tab, then Deductions & Credits, then scroll down to Retirement & Investments and select Traditional & Roth IRA Contributions.  Then follow the prompts.

Roth IRA contributions are not deductible, but they will still be factored into the calculation for the Retirement Saver's Credit.

Click here for additional information regarding Deductions Allowed for Contributions to an IRA.

Click here for information on what to do with Form 5498.

 Click here for additional information on Form 5498.