Form 5498 … Sneaky late arriving tax form can cause confusion … Reminder of purpose of said sneaky 5498 …

Had a great Post about rates garnered from an updated Graphic from our friends at Visual Capitalist ready… it even is the starting point for a group of articles in our next Newsletter… BUT…this sneaky tax form causes lots of confusion and a late week email reminded….so watch for the Rate Post Wednesday – and a shortened Memorial Day Weekend post Friday with family travels next week! So lets go!

With a reminder email hitting our in box late last week from our back office team….

We wanted to share as this late arriving tax form can be confusing…

Late Arriving Form 5498 About to hit !

Form 5498 is the settlement of contributions to Qualified assets like Rollovers, SEP’s and also an ending balance …. most all of this is for the IRS (Internal Revenue Service) recordkeeping….

Here is why:

The contributions allows the IRS to know we in fact did make the contribution i.e. Did not spend the funds – so no taxes or in other cases a tax write off is A ok on our tax return

IRS needs to know the IRA balance for RMD (Required Minimum Distributions) – Recall mandatory draws are based on age and prior year end balances…

Ohh…one other confusing but important point… contributions to SEP or the like made for the prior year (2022) will show a current year (2023) contribution… no worries the IRS matches it to our tax return!

Have a Great “Sneaky Tax Form Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



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