Confusing Tax Form 5498 Coming to Your Mailbox if any Qualified/IRA Activities

So we all trudged through the two decades of changed tax laws, and for the most part put them behind us … at least until extension filing deadline for some….

Just as we are forgetting about Forms, notifications, and tax documents, here comes one more!

Not to worry!

Form 5498 Reminder2019 Form 5498

The late arriving Tax Form 5498 can be confusing as it arrives seemingly late, but not to worry, its’ purpose is settlement …. Here at the Form 5498 IRS website it is noted as “An Info Copy Only” meaning this form is for our information only and no action is required.

So why does this form arrive so late?

Form 5498 captures movement into IRA/Qualified accounts and since we can contribute to IRA’s until the filing date of this year, they have chosen to have the form reported to them AFTER the regular April filing date to capture as many as possible this year contributions for last year….

Getting into the weeds for a moment as an example, if you roll over a 401k into your IRA Rollover… a Form 5498 will find its way to your mailbox …. not to worry, this seemingly late form settles up with the IRS in crazy accurate fashion one year later…showing them that you did NOT take the funds personally and absolving you of any tax burden.

Bottom line – This seemingly alarmingly late form needs to be tossed in your 2019 Tax File and kept for this years taxes, when we file in April of 2020!

Have a Great “No Alarming Tax Form” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

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