This week, trustees are preparing to meet the June 30, 2021 Form 5498 deadline. If your institution deals with saving accounts, here is what you need to know about filing Form 5498 with the IRS.
What Are 5498 Series Forms?
5498 forms are used for reporting on savings plans. The Form 5498 series includes Form 5498, 5498-SA, and 5498-ESA. Here is what you need to know about the three forms for different savings plans:
Form 5498 is used to report on Individual Retirement Arrangements. Trustees are required to report information about account activity, contributions, rollovers, Fair Market Value (FMV), Minimum Distribution Requirements (MDR), and recharacterizations every year. IRS Form 5498 should be filed for every account participant.
Trustees file Form 5498-SA with the IRS to report contributions and rollovers for different types of medical savings plans. This form can be used for the Health Savings Accounts (HSA, the Archer Medical Savings Account (MSA), and the Medical Advantage Health Savings Account (MAHSA).
Form 5498-ESA is only used to report on Coverdell Education Savings Accounts. Eligible parents and grandparents can set up these accounts to help their children and grandchildren save up to meet educational expenses.
Account trustees file Form 5498-ESA to report on contributions and rollover contributions. For Form 5498-ESA, trustees should send Copy A to the IRS, Copy B to account participants and keep Copy C for their records.
When Is The Form 5498 Deadline?
Originally, 5498 forms were due on May 31, but this year, the IRS extended the deadline to June 30, 2021. It’s important to file Form 5498 with the IRS and send out recipient copies by June 30, 2021.
Who Needs to File Form 5498?
Savings accounts are run by financial institutions. The institution’s account trustees are responsible for filing 5498 forms with the IRS and providing recipient copies to their account participants.
How to File Form 5498
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TaxBandits is an IRS-authorized e-file provider that offers incredible, U.S.-based support and makes filing 5498 series forms safe and easy. TaxBandits will even handle printing and mailing recipient copies on your behalf.