topic Where do I input 5498-QA ABLE Account contribution info? in Retirement tax questions

Where do I input 5498-QA ABLE Account contribution info?

brandiadams — Sat, 01 Jun 2019 20:39:40 GMT

You do not need to input the Form 5498-QA for your return...

Rachel_W — Sat, 01 Jun 2019 20:39:40 GMT

You do not need to input the Form 5498-QA for your return as this is provided for your reference. It is used when you need to determine the end of year value of your investment basis in the event of a distribution.

Contributions to ABLE accounts are not deductible on your Federal Tax return; however, they may be deductible on your State return depending on where you live.

Here are some links you may find helpful regarding ABLE Accounts:

TurboTax Article on Tax Benefits of ABLE accounts

https://www.irs.gov/newsroom/irs-reminds-those-with-disabilities-of-new-able-account-benefits

IRS Publication 907

If you have another question regarding ABLE accounts, please comment below so that I can assist you further.

Re: Where do I input 5498-QA ABLE Account contribution info?

dminter — Sun, 15 Mar 2020 19:11:25 GMT

My Nebraska State Tax return asked if I "made an contribution to a Nebraska ENABLE Plan" in 2019. Yes, but the account is my son's (who is 18) account, but I'm on the account and opened it on his behalf. The Form 5498-QA was mailed to my son. Do I answer "yes" to the contribution question on my tax return? Or does my son have to file a return (which he has never done - never had an income) to report that contribution? My understanding is that it's a tax free account. It's not my account, it's my son's account, but we have contributed to the account in 2019. How do I answer the State tax question about contributions to an ENABLE account - "yes" or "no"? Does my son have to report anything?

Re: Where do I input 5498-QA ABLE Account contribution info?

JohnB5677 — Sun, 15 Mar 2020 20:56:49 GMT

Earnings in an ABLE account are not taxed by the federal or state government. Money withdrawn from the account to pay for Qualified Disability Expenses is also not taxed.

While assets in the account belong to the account owner, anyone can contribute. You, friends, and family members can all contribute to your account up to an annual total contribution limit of $15,000 from all sources.

Learn more about contributions

Please see this helpful link: Enable Savings Plan

Edited 03/15/2020

Re: You do not need to input the Form 5498-QA for your return...

AndrewA87 — Mon, 14 Mar 2022 14:16:31 GMT

If your state has Able Account contribution requirements will TurboTax ask about the contributions? How would we know if the state we live in has that requirement?

Re: You do not need to input the Form 5498-QA for your return...

TeresaM — Mon, 14 Mar 2022 14:37:37 GMT

Yes, if your state has requirements for Able accounts, there will be a question in the state portion of your return in TurboTax.

This link has a comparison of basic information for Able accounts in different states Able Accounts

Re: You do not need to input the Form 5498-QA for your return...

danrussell1117 — Wed, 15 Mar 2023 12:50:47 GMT

In Maryland if you contribute to a Maryland ABLE account and live in Maryland you can get up to $2,500 tax deduction. Where do I put this information into TurboTax so that I can claim this deduction on my State Return?

Accessing a Maryland State income tax deduction
up to $2,500 per contributor per beneficiary for
Maryland residents contributing to a Maryland
ABLE account.

https://health.maryland.gov/dda/Documents/COVID%2019%20Documents/Information%20for%20People%20and%20Families/Community%20of%20Practice/3.11.21/ABLE%20brochure%202.22.19%20(1).pdf

Re: Where do I input 5498-QA ABLE Account contribution info?

PattiF — Wed, 15 Mar 2023 13:16:37 GMT

You would input the information found on Form 5498-QA, but not the form itself.

The Maryland college plan can be found under Education. To enter this in TurboTax Online, you can follow these steps:

Start Maryland Return
When you get to "Here's the income that Maryland handles differently", Go to Education, and Click start next to the education savings plans contributions
Answer the question to enter your contributions

@danrussell1117

Re: You do not need to input the Form 5498-QA for your return...

PattiF — Fri, 17 Mar 2023 18:03:54 GMT

Under Miscellanous on the screen Here's the income that Maryland handles differently,

go down to ABLE Account Contributions and Qualified Distributions.
The following screen asks if the user made an ABLE contribution in 2022. Furthermore, it states that there is up to a $2,500 subtraction from Maryland income per ABLE account per beneficiary.

@danrussell1117

[Edited03/17/23|11:03 AM PST]