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?
This form reconciles qualified deposits.
- 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