Everything you need to know about filing 1099s, W-2s, and other tax forms for your business
Form 5498 is the IRS information return trustees and custodians use to report contributions to Individual Retirement Arrangements (IRAs), along with the account’s fair market value and required minimum distribution details. If you hold a Traditional, Roth, SEP, or SIMPLE IRA and received contributions during the tax year — or the account held any value at year-end — you must file Form 5498 with the IRS and send a copy to each account holder.
Our platform makes 5498 eFiling fast, accurate, and IRS-compliant — even when you are reporting contributions across thousands of accounts.
Form 5498 — formally titled IRA Contribution Information — is the IRS information return that reports money going into an IRA during the year. It captures regular contributions, rollovers, conversions, recharacterizations, the fair market value of the account on December 31, and whether a required minimum distribution (RMD) is due for the coming year.
Account holders use the information on Form 5498 to confirm their contributions, claim deductions where they qualify, and verify they stayed within IRS contribution limits. The form also tells them when an RMD is required and how to track their rollover activity. Accurate reporting keeps your account holders on the right side of those limits and keeps your filings off the IRS correction list.
You must file Form 5498 if you are the trustee or issuer of an IRA and any contribution was made to that account during the tax year, or the account held a fair market value at year-end. This includes:
File a separate Form 5498 for each IRA you maintain for an account holder. If a holder owns both a Traditional IRA and a Roth IRA, you file two forms. You also report contributions made between January 1 and April 15 that the holder designated for the prior tax year — these carry back and must appear on the correct year’s form.
Note: A contribution is any money that goes into the account, including regular contributions, employer SEP and SIMPLE contributions, rollovers, and Roth conversions. Report the full amount in the correct box, and always include the year-end fair market value even if no contributions were made — an account with a balance still requires a form.
Collect the following before you file:
Validate every account holder’s TIN before you file. A mismatched name and SSN is the most common cause of a rejected return, and it is the easiest error to catch early. Run each participant through TIN Matching first, then file with confidence.
Deadlines for Form 5498 are fixed. File on time to avoid penalties.
| Milestone | Deadline |
|---|---|
| Fair market value and RMD statement furnished to recipient | January 31 of the year following the tax year |
| Full recipient copy furnished | May 31 of the year following the contribution |
| IRS paper filing | May 31 |
| IRS eFile submission | May 31 |
Filing threshold: If you file 10 or more information returns of any type in a calendar year, the IRS requires you to file electronically. eFiling meets that requirement and confirms receipt the moment you submit.
Penalties: Late or incorrect filings may result in penalties of $60–$310 per form, based on how late the correction is made. Intentional disregard penalties start at $660 per form with no cap. Filing accurate returns on time is the simplest way to avoid every one of these charges.
What is Form 5498 used for?
Form 5498 reports contributions to a Traditional, Roth, SEP, or SIMPLE IRA, plus the account’s fair market value and any required minimum distribution due for the coming year. Account holders use it to confirm contributions, claim deductions, and verify they stayed within IRS limits.
Who is required to file Form 5498?
The trustee or issuer of the IRA files it. This includes banks, credit unions, brokerages, insurance companies, and any financial institution that maintains an IRA and received a contribution or held a balance during the year.
When is Form 5498 due?
The full form is due to the IRS and to recipients by May 31 of the year following the contribution. The later deadline gives you time to capture prior-year contributions made through April 15. Note that fair market value and RMD information must reach the account holder by January 31.
What’s the difference between Form 5498 and Form 1099-R?
Form 5498 reports money that went into the IRA — contributions, rollovers, and conversions. Form 1099-R reports money that left the account — distributions. You may file both for the same account, but they cover opposite sides of the activity.
Do I file a separate 5498 for each IRA?
Yes. File one form per IRA. If a holder owns both a Traditional IRA and a Roth IRA, you file two separate Form 5498s.
Do I still file if the account had no contributions?
Yes. Report the year-end fair market value even when no contributions were made. An account with a balance on December 31 still requires a Form 5498.
How do prior-year contributions get reported?
Contributions made between January 1 and April 15 that the holder designated for the prior tax year carry back to that year. Report them on the correct year’s form so the holder’s deduction lines up with their return.
How does the RMD requirement get reported?
If the account holder must take a required minimum distribution for the coming year, check the RMD indicator and report the RMD date and amount in the appropriate boxes. This alerts the holder to act before their own deadline.
How do I avoid a rejected 5498 filing?
Validate each account holder’s name and SSN before you submit. Mismatched taxpayer data is the leading cause of rejected returns. Running TIN Matching first catches these errors while you can still fix them.
What IRS penalties apply for missing or incorrect 5498 forms?
Penalties range from $60 to $310 per form depending on how late the correction is filed. Intentional disregard penalties start at $660 per form with no cap.
Report IRA contributions and fair market value accurately and on time. Start your free 7-day trial and file 5498 forms directly with the IRS today.
