My wife and I both received Form 5498 in today’s mail. I been taking and reporting RMDs since I turned 70. Today is my 79th birthday. Form 5498 basically reports my year end IRA balance as of 12/31/2022. I don’t recall receiving this form in the past.
The cover letter accompanying the Form 5498 says to “Please keep this Form 5498 with your tax records”.
Is that all I have to do? File it away in my tax return envelope with all the other support?
Regards,
ImAGolfer (retired '03)
Happy Birthday!!!
Yep! That form does get reported to the IRS but does not need to be reported on your return. It is for informational purposes only, and I’m surprised that you have not received one in the past. I think Fidelity sends me one of those forms every year since we established our IRA accounts.
Here’s what a google search of the IRS site says:
The information on Form 5498 is submitted to the IRS by the trustee or issuer of your individual retirement arrangement (IRA) to report contributions, including any catch-up contributions, required minimum distributions (RMDs), and the fair market value (FMV) of the account.
Cheers!
'38Packard
That is the number off which your RMD for that account is based.
Note that if you have multiple IRA accounts, it is the sum of all the RMDs across all the accounts that matters. It could all come out of one account as long as the total RMD is based on the sum of all the accounts.
That’s not what I am experiencing. In my case the Form 5498 I received only reflects our IRA balances at R. W. Baird. It does not include the balance I have at Scudder (Deutsch Funds).
Perhaps I’ll receive another Form 5498 for the Scudder balances. I do take RMDs from both institutions separately.
Regards,
ImAGolfer
I would hope that each company sends their own form. Otherwise they would have to be sharing information about you and your account balances with each other
Mike
You should. Then you have the option of adding all of them up, calculating your total RMD, and then allocated them among the accounts as you please, not exactly as each one would indicate.
It does more than that. It also documents all contributions, including rollovers and conversions, into your account, and any recharacterizations that were done during the year.
It may be because the Form 5498s don’t typically come at this time of year. Because they document contributions, they generally aren’t issued until after the IRA contribution deadline for the year has passed, which is April 15 in most years. In fact, 5498s often aren’t issued until June.
I think you are misunderstanding what @RHinCT said. It does not say that multiple brokerages will be reported on a single 5498. In fact, each brokerage should be sending you a 5498 for the accounts that they administer. But as I noted above, they generally don’t come until much later in the year.
That said, it’s still the sum of all of the balances of all the IRA accounts that you need to base your total RMD on, and the total RMD that is taken across all accounts that will count toward ensuring you have taken the correct RMD out, which was the point that @RHinCT was trying to make. So, you could take your entire RMD out of your Baird account, and not take any distribution out of your Scudder account. Your wife could do the same for her RMD. (RMDs cannot be combined across individuals.) That said, if you do take your entire RMD from your Baird account, you would have to be sure that Scudder doesn’t automatically push an RMD distribution out to you, or you would wind up taking more than your RMD requirement.
AJ