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Form 5498 is the information return that trustees and issuers file with the IRS to report IRA contributions, rollovers, conversions, repayments, and the fair market value of retirement accounts.
The IRS has released a draft 2026 Form 5498, generally for 2026 account activity reported in 2027. Since the form is still in draft status, filers should not treat it as final guidance. Still, the draft highlights several areas that reporting teams should monitor before the filing season begins.
1. Roth SEP and Roth SIMPLE reporting is clearer
Under the SECURE 2.0 Act, employers became permitted to offer a Roth designation option within SEP and SIMPLE IRA plans, and employees could make after-tax contributions to these traditionally pre-tax accounts. The 2025 Form 5498 did not explicitly address where those Roth-designated contributions should be reported. The 2026 draft resolves that ambiguity.
Boxes 8 and 9 continue to be used for employer-sponsored IRA contributions:
- Box 8 reports SEP contributions
- Box 9 reports SIMPLE IRA contributions
The 2026 draft now states more clearly that these boxes include contributions made to either traditional SEP and SIMPLE IRAs or Roth SEP and Roth SIMPLE IRAs.
This means:
- Roth SEP contributions should be reported in Box 8
- Roth SIMPLE contributions should be reported in Box 9
- These amounts should not be reported in Box 10 simply because they involve a Roth designation
Box 10 is still used for individual Roth IRA contributions, including certain qualified tuition program rollovers to Roth IRAs. However, the draft adds a clearer exclusion: Box 10 does not include amounts already reported in Boxes 8 or 9.
For trustees, issuers, and software providers, this is mainly a workflow and validation update. Before filing TY 2026 returns, reporting systems should confirm that:
- Roth SEP contributions flow to Box 8
- Roth SIMPLE contributions flow to Box 9
- Individual Roth IRA contributions flow to Box 10
- Amounts reported in Boxes 8 or 9 are not duplicated in Box 10
This is also a good time to review related Form 1099-R and Form W-2 reporting logic, since Roth SEP and Roth SIMPLE contributions may have income reporting requirements outside Form 5498.
2. SIMPLE IRA conversion wording changed
The 2026 draft also changes how Roth IRA conversions are described in the participant instructions.
In the 2025 instructions, the wording specifically referenced conversions from traditional SIMPLE IRAs to Roth SIMPLE IRAs. Box 2 excluded those conversions from rollover reporting and directed them to Box 3. Box 3 then described conversion reporting as including amounts converted from traditional IRAs or traditional SIMPLE IRAs to Roth IRAs or Roth SIMPLE IRAs.
The 2026 draft removes the SIMPLE IRA references from both Box 2 and Box 3.
Now, the draft language focuses only on:
- Conversions from a traditional IRA to a Roth IRA
- Amounts converted from traditional IRAs to Roth IRAs
At this point, it is not clear whether this is an intentional reporting change or a drafting omission. Trustees and issuers that handle traditional SIMPLE IRA-to-Roth SIMPLE IRA conversions should flag this change, but should avoid making final system changes until the IRS releases the final 2026 instructions.
3. Box 14 adds code HP for first-time home purchase repayments
Another notable update appears in Box 14, which is used to report repayments of certain IRA distributions.
The 2026 draft adds qualified first-time home purchase distributions to the list of repayment categories in Box 14a. It also adds HP as the corresponding repayment code for Box 14b.
Box 14 is not used for ordinary IRA contributions. It is used when a participant repays a distribution that is eligible for special repayment treatment.
With the new code, trustees and issuers will have a specific reporting path for qualified first-time home purchase repayments.
Systems that process or validate Box 14b should add HP as a permitted code once the IRS finalizes the form. Tax professionals should also be prepared to identify clients who took a qualifying first-time home purchase distribution and later repaid the amount under applicable IRA rules.
4. Trump account reference added
The draft participant instructions also add a reference to Trump accounts.
According to the draft, Form 5498 is used for a Trump account only after the account beneficiary’s growth period. During the growth period, Form 5498-TA is used instead.
This update will not affect every Form 5498 filer. However, institutions that may administer these accounts should monitor both Form 5498 and Form 5498-TA guidance before finalizing their reporting procedures.
What should filers do now?
Because this is still a draft form, trustees, issuers, payroll providers, and tax software teams should treat these updates as planning items rather than final filing instructions.
Before 2027 reporting begins, review:
- Box mapping for Roth SEP, Roth SIMPLE, and individual Roth IRA contributions
- Conversion reporting rules for SIMPLE IRA-to-Roth SIMPLE IRA transactions
- Box 14 repayment code validation, including the new HP code
- Any Form 5498-TA requirements for Trump accounts
File Form 5498 with TaxBandits
TaxBandits supports Form 5498 e-filing and monitors IRS form updates each tax year. Once the IRS finalizes the TY 2026 Form 5498 and instructions, TaxBandits will reflect confirmed changes to help trustees, issuers, and tax professionals file accurately and stay compliant.
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