An Overview of the Form 5498 Series for Tax Year 2020

What is the 5498 series, why is it important?

Summer is on it’s way, the weather is getting warm and we are all ready to get outside and enjoy the upcoming memorial day activities and a long weekend. However, it is important to note that, while the Form 5498 Series forms are usually due to the IRS on May 31, that is not the case for 2020. 

Whether you are required to file one or more of these forms on behalf of your account participants, or if you simply receive a copy of one of these forms, this article is here to give you all the most needed information. 

What is the deadline for filing the Form 5498 Series? 

The deadline for filing these forms is June 30, 2021 for the most part, for a complete breakdown of the deadlines, check out this chart. 

Form 5498/ Form 5498-ESA/ Form 5498 SADeadline
E-filingJune 30, 2021
Paper FilingJune 30, 2021
Recipient Copy (5498): (Only for FMV & RMD) Feb 01, 2021
Recipient Copy (5498): (Other types of IRAs)June 30, 2021
5498-ESA/ 5498 SA Recipient CopyJune 30, 2021

What forms make up the Form 5498 Series? 

There are three main forms in this series, all of them are centered around reporting different types of savings plans. 

Form 5498

IRS Form 5498 deals with Individual Retirement Arrangements. The IRS requires that trustees report certain information about the annual activities to these accounts. They must file a Form 5498 for each account participant. In this form trustees of these accounts must provide the contributions, rollovers, Fair Market Value (FMV), Minimum Distribution Requirements (MDR), and recharacterizations of the account. 

Form 5498-SA

Form 5498-SA  deals with different types of medical savings plans. This includes the Health Savings Account (HSA), the Medical Advantage Health Savings Account (MA HSA), and the Archer Medical Savings Account (MSA). The trustees of these accounts must provide information to the IRS regarding contributions and rollovers during the tax year. 

Form 5498-ESA

This form deals specifically with the Coverdell Education Savings Account. This is an education savings account that parents or grandparents can set up for their children and grandchildren to help save for their education. This account is available to individuals under a certain income bracket. The trustee of this account must report the contributions and rollover contributions on Form 5498-ESA.

Who is responsible for filing the Form 5498 Series? 

These accounts are created and managed by banks and financial institutions. Therefore, the financial institution is the trustee or custodian of the account. The trustee of the account is responsible for filing the Form 5498 Series with the IRS and distributing recipient copies to the account participants. 

Who receives a copy of the 5498 Forms? 

The account participant should receive a Form 5498 annually reporting contributions information for their accounts. Whether the account they hold is an IRA, a health savings plan, or if they are the designated beneficiary of a Coverdell Education Savings Account, a copy should be provided. 

Looking for a simple solution for e-filing your 5498 Series Forms to the IRS and distributing the participant copes? 

Check out TaxBandits, our application supports these forms and provides an easy and accurate e-filing solution, we can even handle the printing and postal mailing of participant copies. 

Form W2

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