Just when you thought is safe to forget about Taxes for another season …. A quick reminder to keep possible confusion down here!
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 balances from the prior year …. 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 (2024) will show a current year (2025) contribution… no worries the IRS matches it to our tax return!
Have a Great “Sneaky Tax Form Reminder” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
