Tag Archives: Form 5498

June 2021 Financial Planning and Capital Market Review – By John Kvale

Hello and Welcome to our June 2021 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

BREAK IN – HOLIDAY PARTY NOVEMBER 20 FROM 3-5 AT DALLAS ATHLETIC CLUB

Hope you enjoy!

June 2021 Video

YouTube

Financial Planning Tip(s)

Why Not to Overfund a Retirement Plan

In this updated post from a few years ago, we remind how easily it is to overfund a 401k plan and why, while it is not the end of the world, it is not a good tax situation….

Should you accidentally over fund your retirement plan … what occurs is a double taxation!

  1. You do not get the deduction for the contribution
  2. You will likely pay taxes on the eventual distribution

Job change is the most likely reason for overfunding!

Pesky Late Arriving Tax Form Reminder – Form 5498

In this mid month post we remind those of an extra late arriving tax form….

Murphy’s law being applied, the form just arrived last week….about two weeks after our post…..

Reason for receipt:

  • Rollover of a 401k or the like to an IRA – Most frequent
  • Contribution to an IRA
  • Contribution to a SEP

One of the most confusing parts of this form is that even though you may have made a qualified contribution for a prior year i.e. 2020, if you made that contribution in 2021, depending on the type of contribution the Form 5498 MAY show your contribution in year 2021.

Capital Market Comments

Inflation or No Inflation

In this part two post, “The Smartest Guys in the Room” post we discussed via interest rate futures graphs the movement after FOMC dot plot adjustments and the interest rate markets….

This is an updated Graph of the 2 year US Treasury, which is holding lower, (higher yield) possibly due to faster expected rate increases!

This is the ultra long 30 Year Treasury, which continues to trend higher (lower Yield) possible pricing less inflation from the above mentioned expected shorter term rate increases!

Ok…that’s a wrap for the June review…. Hello July!

Have a Great Day, Talk to You at the End of July!

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

Reminder of Seemingly Odd Late Tax Statement – Form 5498 … FOMC Dot Plot Preview … Newsletter Update … Summer Friday YAY!

Just when we happily said goodbye to a very long tax season due to the various extensions provided by the IRS, in comes a seemingly odd late tax form.

Form 5498 Reminder

Form 5498 is headed to some of our mailboxes over the next two to four weeks, again due to various extensions in the IRS filing due date, here are some of the reasons why:

  • Rollover of a 401k or the like to an IRA – Most frequent
  • Contribution to an IRA
  • Contribution to a SEP

One of the most confusing parts of this form is that even though you may have made a qualified contribution for a prior year i.e. 2020, if you made that contribution in 2021, depending on the type of contribution the Form 5498 MAY show your contribution in year 2021.

Not to worry, the IRS knows there are frequently a seemingly miss match of years and accounts for this.

Here is the IRS information if you need further clarity.

FOMC Statement and Dot Plot Preview

Earlier this week the FOMC (Federal Open Market Committee) led by Jerome Powell, released their Economic analysis update along with a interview after a pre-prepared reading by Powell himself.  The release, which also included the “dot plot”, which is an anonymous estimate by all the reserve members, voting and non voting on where they think the economy, is carefully scrutinized by all in the investment community.

We will take a deeper dive next week as there were some interesting cross currents post announcement and interview .. even with summer doldrums dragging along!

Newsletter Update

We are happily putting the final touches on the Newsletter, some of which partial pieces have been reviewed here, on our Blog, but with a longer Newsletter form we go into greater detail in our subject matters that we hope you will enjoy reading as much as we enjoyed creating.

Friday

Ahhhh…. But today is a Friday, for those that have been following… the rain has left us, the steam is subsiding from an abnormally fast early summer, the heat wave is reminding us why there is a saying in Texas:

“If you don’t like the weather, just wait a few it certainly will change!”

Have a great weekend, don’t forget to spend time with those special in your life and we will talk to you next week!

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

August 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale …

Hello and Welcome to our August 2020 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

Hope you enjoy!

August – 2020 Video (YouTube)

Financial Planning Tip  –

Mysterious Form 5498

In a luckily timed post (two showed up in the mailbox the same day of the reminder) here we discussed the extra late arriving Form 5498.

This is a confusing settle up form that requires not action other that to add to your tax file in order to avoid unnecessary taxes!

Fraud Wire Delay Reminder

In this post we remind those setting up new Wire/Linking instructions to financial accounts, especially non liked titled accounts to be careful and have patience.

Fraudsters are attempting to take advantage of the situation!

Capital Market Comments

Gone Too Far

You know us to be very positive – all through the many negatives that have occurred !

You also know we will call it like we see it!

Markets have officially gone too far and are ahead of themselves, expect bumps and no extra risk taking is warranted at this time – CAREFUL!

Have a Great August Update!

Talk to you at the end of September!

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

Mysterious Tax Form Coming … The Extra Late Arriving Form 5498 !

During normal tax reporting years, just after the final push for regular Mid April filings is complete … along comes the late arriving Form 5498 in May …

This year with the extended regular filings, this mysterious tax form is making it’s way to us even later than normal!

Form 5498 – Who Get’s One and What it’s For

Form 5498 arriving any day now is the settle up for the IRS for most types of Rollovers …. it notifies the IRS that a distribution made in 2019 (yes way back in 2019) has been reinvested and is not taxable.

This form also notifies the IRS of other personal retirement plan contributions such as the SEP – Simplified Employee Pension Plan among others.

File it with you regular tax files but don’t worry that you have missed something… its for Uncle Sams use mostly!

Have a Great “Form 5498” 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

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

Late Arriving Tax Form 5498 AND Proxy Season Notice Reminder …

With the eventual wave to tax season goodbye … oh wait … We need to remind you of ANOTHER  form that will be coming soon.

Form 5498 Arrival Soon2017 Form 5498

This tax form limps into your mailbox and may cause an increase in blood pressure due to the instant though “Oh no, I forgot something?”

NOPE, not a worry. This form settles up your contributions, rollovers and values for your Qualified Assets ….. think IRA, SEP or 401k Rollover and the like.

It rolls in after tax season as it reports contributions for the current year to the IRS and they settle up the matching on their side for the appropriate year. Yet another neat thing the IRS does for us.

Proxy Season Coming

As a courtesy for clients and as a more GREEN Internal Policy we accept all Proxies for clients and vote. One Proxy statement which may be delivered to us electronically can handle literally hundreds of clients at once, saving the company a headache and lessening the duplication cost and waste.

Companies occasionally lose the directive to send us the material …. new recordkeeping, merging with another company or the like, are reasons, but no matter – If you are receiving proxy material please let us know and we will have information at the delivering company update their records, saving time and waste.

Looks to be a wonderful weekend here in the south … enjoy yours wherever you may be and …. Talk to you next week!

John A. Kvale CFA, CFP

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

Confusing Tax Form 5498 Explained

Just when we all finally think it is safe to get out of the tax waters (Jaws reference haha) our good old friend, Form 5498, arrives in the mailbox.

What is Form 5498?2017 F 5498

This form reconciles qualified deposits.

Examples include:

  • Confirmation of 401k rollovers
  • Confirmation of IRA contributions
  • Proof of Simplified Employer Pension (SEP) plans contributions

Why does this form come in May? 

Since this form reconciles rollovers and also proves deposits, this form comes AFTER tax season. This form proves the amount contributed IN THE YEAR is was made, said another way, if we make a SEP deposit in the current year for the prior year, Form 5498 shows the deposit in the year it was made and the IRS knows there may be a delay.

What do I do with this form?

Keep it and file it with your next years (current tax year) information. It will correctly reconcile your IRA/401k transactions.

Have a great “Less Taxing Day”!

John A. Kvale CFA, CFP

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

Form 5498 … Pesky Tax Form Reminder

Each year we FINALLY say goodbye to tax season.

Taxes are extended or done.

The pain or pleasure has been experienced.

Money has moved one direction or the other.

The lost, but finally found forms are filed safely.

Then you gasp as one last form hits your mailbox.

Form 54982016 Form 5498

Straggling surprising and pesky Tax Form 5498 is a form mandated by the IRS that matches your Pre-Tax contributions to your tax return.

Contributions for the prior year, made in the current year may show in this form…do not worry, the IRS will match these with your return NEXT year.

This form comes out AFTER tax filing season to make it easier to catch the contributions for the IRS.

File it in your 2017 tax files… No other action is necessary…  Blood pressure back down..haha

Today is Friday… Have a wonderful weekend !

John A. Kvale CFA, CFP

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

 

Form 5498 Reminder ….

Just when you thought it was safe to forget all about taxes  …. a seemingly straggling form may arrive.

Form 5498Form 5498

  • Usually arrives in May
  • Confirms with the IRS that you rolled over your 401k, IRA or other taxable distribution to another plan
  • Confirms to IRS that Funds rolled over are not taxable
  • Applies to the prior tax year, not this year
  • Causes angst due to the late arrival (tossed this one in based on truth)

These are the main characteristics of this seemingly tardy tax form. Now you know… just a reminder!

Give us a call if you have any questions!

Happy Friday … You know …. time with those special !!!

John A. Kvale CFA, CFPJK Street Cents Logo

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave #590
Dallas, TX 75225

Late Arriving Form 5498 On the Way

Just when you thought it was safe to put your tax stuff down, lick the wounds, and forget about it for another nine months, a pesky form may be headed your way.

Form 5498 Mailed End Of May5498 blank

Form 5498 reports all contributions and rollovers to all IRA’s and SEPS. If you fall into one of these situations … it’s in the mail.

DO NOT WORRY ! This form is for reconciliation on a delayed year basis. Toss it into your tax files and you are done.

Have a Great Day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225