Most individuals have filed their 2025 returns by now. But by the beginning of June, individuals with IRAs will usually receive IRS Form 5498—well after the regular tax-filing date. This timing always seems to create some confusion: recipients may think that they should have had this form earlier to help with tax preparation, or that they now have to do something with the form. But rest assured, because most of us simply need to save Form 5498 with our other tax records without needing to take any action.
What Is Form 5498?
IRS Form 5498 is considered an “information return,” which means that it does not calculate any tax you owe or refund owed to you. Information returns merely track the flow of money to ensure that everyone prepares their tax returns properly. Because the IRS also receives copies of Form 5498 (and all other information returns), you should make sure that the details on the form are correct to avoid unnecessary IRS scrutiny. For example, if you rolled over IRA assets in 2025 but your Form 5498 does not reflect this, an uncorrected form could lead to an IRS notice of tax deficiency.
What Information Is On the Form?
Form 5498 reports all sorts of detail to the IRS.
- Annual Traditional or Roth IRA contributions
- Rollover contributions
- Roth conversions
- Recharacterized contributions
- Fair market value (FMV) of the IRA
- SEP/SIMPLE IRA contributions
- Required minimum distribution (RMD) amount and deadline
- Postponed or late contributions
- Repayment of certain distributions
A taxpayer could receive a Form 5498 with many of these boxes filled in—or very few. But at least one box should always be used. That is the “FMV of account” (box 5), which reflects the value of the IRA on December 31 of the previous year.
Why Is Form 5498 Sent After My Tax-Filing Deadline?
There is one very good reason that this form is sent after most of us have filed our returns. Because many people make a prior-year contribution between January 1 and April 15, the IRS needs to capture this information while still allowing financial organizations enough time to process it. By giving them one-and-a-half months—from April 15 until the end of May—to record and report such contributions, the IRS ensures that it has the information needed to evaluate taxpayers’ returns properly. If the Form 5498 deadline were earlier in the year, the IRS would not know about IRA carryback contributions until almost a year later than they currently do. This would substantially delay the review process.
Not All Form 5498s Look Alike
You should receive a separate Form 5498 for each IRA that you maintain. You may, for instance, have a Traditional IRA, a Roth IRA, and a SIMPLE IRA at one institution. So you will get three 5498s. Many individuals maintain IRAs at different financial organizations. So they, too, will get more than one 5498. The timing and appearance of these various 5498s can differ. Some organizations use a form that mirrors the IRS’s official printed form; others may use a “substitute” form that contains the same information but looks different. The common thread in any substitute form must be that the information is also sent to the IRS and that this fact is clearly communicated to the taxpayer. The IRS requires a substitute Form 5498 to include the following legend: “This information is being furnished to the IRS.”
Financial organizations may also send the form at different times. For example, one firm may send Form 5498 by the end of January to satisfy the requirement that an annual account statement be sent with the fair market value of the IRA. Then, and only if the IRA owner makes a carryback contribution for the prior year, the firm will send an updated 5498 by the end of May. Other financial organizations will simply wait until the normal May 31 deadline so they do not have to amend any previously sent forms. Each method has its pros and cons.
An Important Reminder for Roth IRA Owners
Taxpayers report Traditional IRA contributions on their federal tax returns either as deductible or nondeductible contributions. Annual Roth IRA contributions, on the other hand, are not reported anywhere on the tax return. So it is essential that Roth IRA owners keep track of their contributions, typically by storing their Form 5498s with their other important financial records. Not only will this help verify when the Roth five-year clock has begun. But it will enable an accurate record of any basis in the Roth IRA in the event that a nonqualified distribution is taken.
Carefully Review Your Form 5498s
As with any important tax record, you should examine your 5498 closely when you receive it. The form is not complicated and it may not contain that many details about your IRA. So reviewing it should take just a minute. If you find an error—or have questions about what the form contains—let your IRA administrator know so that your concerns can be addressed. Mainstar Trust will be happy to walk you through any questions you may have about your Form 5498.