A Complete Guide to IRS Form 5498 for 2025: Everything You Need to Know

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When it comes to managing retirement accounts, accurate reporting isn’t just a best practice—it’s a regulatory requirement. One of the key forms used to report IRA-related activity to the IRS is Form 5498. Filed by IRA custodians or trustees, this form captures important details such as contributions, rollovers, and required minimum distributions (RMDs), helping ensure that both the IRS and the account holder have a clear record of the account’s activity.

Unlike forms submitted by the taxpayer, Form 5498 is sent directly to the IRS by the financial institution responsible for administering the IRA. This makes accuracy and timeliness especially important—not only to remain compliant with IRS rules, but also to support your account holders in meeting their tax obligations and planning for retirement.

In this guide, we’ll break down what Form 5498 includes, who must file it, key deadlines to keep in mind, and why getting the details right matters for your institution and your clients.

Who needs to file Form 5498?

As described above, IRS Form 5498, IRA Contribution Information, is a tax form that reports individual retirement arrangement (IRA) details to the Internal Revenue Service (IRS). This form includes information about IRA contributions, required minimum distributions (RMDs), Roth IRA conversions, rollovers, and IRA accounts’ fair market value (FMV).

Suppose you’re a financial institution, bank, or any other entity that serves as the custodian or trustee of an IRA (Individual Retirement Account). In that case, you must file IRS Form 5498 and furnish a copy to the individual IRA holder (participant).

What contributions must be reported on Form 5498?

You’re required to report all contributions made to any IRA during the tax year on Form 5498. These include regular, rollover, recharacterized, and conversion contributions. Each type of contribution is reported in specific boxes:

• Box 1 – Traditional IRA Contributions (excluding rollovers and recharacterizations)
• Box 2 – Rollover Contributions to any type of IRA
• Box 3 – Roth IRA Conversion Amount (amount converted from a traditional to a Roth IRA)
• Box 4 – Recharacterized Contributions (if a contribution was changed from one IRA type to another)
• Box 8 – SEP Contributions (Simplified Employee Pension plans)
• Box 9 – SIMPLE IRA Contributions (Savings Incentive Match Plan for Employees)
• Box 10 – Roth IRA Contributions
• Box 13a – Postponed Contributions (e.g., for disaster relief or military)
• Box 14a – Repayments (e.g., repayments of qualified reservist distributions)

If no contributions were made, you’re still required to complete the following boxes, if applicable:

• Box 5 – Fair Market Value (FMV) of the account at year-end
• Box 7 – Type of IRA
• Box 11 – RMD Checkbox (for account holders reaching RMD age)
• Boxes 12a & 12b – RMD Date and Amount
• Boxes 15a & 15b – FMV of Certain Specified Assets and Codes

When is the deadline to file Form 5498?

The deadline to file Form 5498 for the 2024 tax year is as follows:

• Usually, the filing deadline is May 31, but since May 31, 2025, falls on a weekend, the deadline is automatically switched to the next business day, which is Monday, June 2, 2025.
  
• The deadline for distributing participant copies of FMV and RMD information is January 31, 2025, while the deadline for other IRA details is June 02, 2025.

Along with Form 5498, the deadline to file Forms 5498-SA and 5498-ESA is June 2, 2025.

What are the penalties for late filing of Form 5498?

If you fail to file Form 5498 (or related forms like 5498-SA, 5498-ESA, etc.) on time, the IRS may impose a penalty of $50 per return. Unlike other forms, there’s no maximum limit on the total penalty amount. However, if you have a valid reason for the delay, such as a natural disaster or serious illness, you can avoid the penalty by showing reasonable cause.

What are the common errors to avoid when filing Form 5498?

As an IRA trustee, issuer, or custodian, submitting accurate information on Form 5498 is essential for proper IRA reporting. Filing errors can lead to compliance issues and confusion for the IRS and account holders. Here are some common mistakes to watch out for:

• Reporting the IRA contribution for the wrong year
• Failing to report the contribution as a conversion from a traditional IRA to a Roth IRA
• Sending out the same Form 5498 more than once
• Leaving out or entering incorrect information about required minimum distributions (RMDs)

To avoid these errors, carefully review all the information before filing Form 5498 with the IRS and issuing participant copies. Double-checking the details can help you stay compliant and ensure accurate reporting.

Simplify your 5498 E-filing with TaxBandits!

When it comes to filing your 5498 Forms, you have two options: paper filing or electronic filing. However, the IRS prefers electronic filing because it’s more efficient. Electronic filing allows the IRS to process your forms faster and gives you quicker updates. Here’s where TaxBandits steps in as a game-changer!

As an IRS authorized e-file service provider, TaxBandits makes filing 5498, 5498-SA, and 5498-ESA forms easy, ensuring you stay in full tax compliance with the IRS. With a free TaxBandits account, you can e-file your 5498 forms directly to the IRS.

TaxBandits also allows you to distribute recipient copies via postal mail or a secure online portal. We ensure that your completed 5498, 5498-SA, and 5498-ESA forms follow IRS business rules, guaranteeing accurate filing. TaxBandits securely stores your transmitted 5498 forms for up to 7 years.

Start E-filing your 5498 forms today with TaxBandits!