Traditional IRA to Roth Conversion and Form 5498

[DBentenA]

I am currently working on the 1099-R portion of TT Premier. 

I no longer make contributions to my Traditional IRA and haven't for awhile.  I rolled over some funds from the Traditional IRA into a Roth IRA. 

TT wants to know the end of year value of my Traditional IRA and states this can be found on Form 5498.  I won't get a Form 5498 for the Traditional IRA because I no longer make contributions (so says the bank). 

Should TT instructions asking for the IRA value on December 31, 2023 read "This information is sent by mail on Form 5498.  Do not include Roth IRAs.  You may also find the December 31, 2023 account value on the IRA account statement as the Closing Value?"

The only 5498 I will receive is for the Roth account.  For me TT is confusing at this point and needs clarification about the value of the Traditional IRA.  I think last year I may have made a mistake.  Same part and same confusion for me.

Thank you.

[VolvoGirl]

I don't think the year ending balance is on the 5498.  You would use the 12/31 account statement.  You may get a 5498 at the beginning of the year if you need to take out the RMD if you are the right age in addition to getting one for contributions.  Paging @dmertz 

[dmertz]

If the bank won't be sending you a Form 5498 because you made no contributions during (or for) the year, they were required to provide you with the year-end balance in January, typically on a year-end statement.

Even though they might not send you a copy of Form 5498, they normally e-file it with the IRS, so it will eventually be in year Wage & Income transcript, although likely not in time to be of use in filing your tax return unless you request a filing extension.

If you have no basis in nondeductible traditional IRA contributions, TurboTax has no need to prepare Form 8606 Part I where the year-end value would be used to calculate the taxable amount of your Roth conversions.

[KTS2]

I have received Form 5498 from my bank, but it does not show value of my traditional IRA account on December 31, 2023, even though TT says "This information is sent by mail on Form 5498". Thinking my bank might have omitted this, I looked up the official Form 5498 from the IRS website. There does not seem to have box for this information. Is this a bug TT needs to fix? Really confusing.

[PaulaM]

The FMV of your IRA account should be shown in box 5. If you don't have a value in the box, contact the custodian for the amount. Note: Plan custodians can distribute form 5498 up to 5/31/24

2023 Form 5498

[KTS2]

After some digging, I think I found the answer. Box 5 on my Form 5498 is "Fair market value of account". It actually means "FMV of all investments in your account at year end." Wish TT had included this in the instruction.

[KTS2]

Yes, you beat me to it :=) Thanks!

[dmertz]

If you are furnished with a Form 5498, it is required to show in box 5 the FMV of the account as of December 31 (which I believe you have found).