Type of IRA

[redrydr1]

I filed my taxes already. I entered my contribution amount and type in the worksheet type and selected Roth. The bank sent me a 5498 after the fact and it shows only IRA. (Roth or SEP) are not checked. What do I do now file an amendment? 

[dmertz]

You potentially have two options.  If you were eligible to make a Roth IRA contribution for 2019, you can ask the IRA custodian to recharacterize the contribution that was apparently actually made as a regular traditional IRA contribution to be a Roth IRA contribution instead.  The custodian will move the gain or loss adjusted amount to the Roth IRA and your filed tax return will be in agreement with your contribution.  Before requesting a recharacterization, make doubly sure that your modified AGI for the purpose is not so high relative to your filing status as to make you ineligible for any part of the resulting Roth IRA contribution.

Otherwise, you must amend your 2019 tax return to remove your entry of a Roth IRA contribution and enter it as a regular traditional IRA contribution instead.  TurboTax will either include the contribution as deductible on Schedule 1, resulting in a refund of tax, or as a nondeductible contribution on Form 8606.  (If the result is that the entire traditional IRA contribution is nondeductible, you can probably mail the Form 8606 stand-alone, without amending on Form 1040-X.)

[BillM223]

So are you saying that the corrected 5498 that you received did not have an amount in box 10? 

Did your return show a deduction for the Roth IRA contribution? It shouldn't.

Did the 5498 show your contribution in box 10? It should have.

If the only thing "wrong" is that the IRA custodian forgot to check the right box in line 7, then you don't need to amend your return at all - your return (if the contribution was not deducted) is correct. It's the IRA custodian who owes you another corrected 5498.

Ask the custodian for the corrected 5498 and then don't worry about it. Like as not, if the IRS sees the 5498 with an amount in box 10 but the wrong box checked in 7, they will realize what happened - especially if your return is correct.

Just call the custodian for another corrected 5498 and make a note about this in your tax files, in case the IRS ever writes you a letter about it.

[BillM223]

dmertz took a little different tack than me, but we don't really disagree - the main question is how did the custodian report the contribution? Was the wrong box in line 7 checked or was the contribution put in the wrong box on the 5498?

Follow his train of thought - it's a little clearer than mine - and have a chat with your IRA administrator to see what they did. As dmertz says, if they reported in both in line 7 and in line 1 as a traditional IRS contribution, then you have the two choices outlined above.

[dmertz]

If box 10 of the Form 5498 has a nonzero value and even though box 7 "Roth IRA" is not marked, the custodian has prepared the form incorrectly, but this would be unusual for any well established IRA custodian.

Make sure that you are looking the Form 5498 that actually shows your contribution for 2019.  One and only one of the box 7 boxes must be marked.  If the "IRA" box is marked, as BillM223 said, the form should show your regular traditional IRA contribution in box 1.