Tag Archives: Tax form

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.

Tax Forms (1099) In the Mail … Finally … Don’t FILE yet though

The afore-mentioned 1099’s are complete and on their way to your mailbox. You will receive a paper copy of your 1099 even if you have electronic statement delivery.

Your Realized Gains and Losses report has either been mailed or is in your personal Vault if you have one. In many instances, there may be no Realized Gains and Loss reports.Uncle Sam $

Your tax professional will need both of these reports if applicable.

We recommend you hold on actual filing until later in the season, as corrected tax information is becoming more the norm!

Have a Great Day!

John A. Kvale CFA, CFP

PS Anyone besides me, NOT LIKE how the politicians grandstand Janet Yellen?

PSS  Dallas Today – Wow – 2-25-14 Dallas Snow

8222 Douglas Ave # 590
Dallas, TX 752225


Tax Form Update … They are not here yet

Wondering where are my 1099’s ?

Us too … there is a delay across multiple providers.

Our suspicion is there is a disconnect somewhere slowing specific data for many firms.

We will notify you when … They are here !Theyr're Here Full

Have a great day!

John A. Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225

Tax Form 4868 ….If you are behind on your tax return, an automatic extension may be the way to go

For those that have found they may be behind in their tax filings, next Monday the 15th is regular personal filing deadline, Form 4868 may be your friend.Form 4868 2012

Form 4868 gives tax filers an extension to October 15th…..a full six month reprieve.

Items to remember when you file Form 4868

  • Filing form 4868 is automatic and will not be declined by the IRS
  • If you owe taxes, penalties may accrue
  • Filing a payment with your extension is a good idea if you think you may owe additional taxes
  • Just because your extension is six months does not mean you HAVE to wait until October (keeping your feet moving on your taxes may help you from having another last minute decision)

Have a great day!

John Kvale

8222 Douglas Ave # 590
Dallas, TX 75225

A Confusing Tax Form Coming to a Mailbox Near You (Form 5498)

Form 5498

Just as our US Federal main tax filing dates fade in our memory, many times a straggling IRS form lands in our mailbox, causing some confusion.

Form 5498 is sent as a means of IRS reconciliation and tracking. For example, if an individual rolls a 401k over from his or her old employer into an IRA account, the firm receiving the rollover generates a Form 5498.  In this case the former employer also generates a tax form showing the funds were distributed (Form 1099.)

In our example form 5498 is sent to the investor AND the IRS for proof the funds did in fact get rolled over and did not make their way out of IRA status, thereby becoming taxable i.e. Proof that the investor did not take the money and spend it!

All of this sounds reasonable, but due to the timing effect of filing dates and reconciliation, Form 5498 makes its way into our mail box in May of the following year, which is the main source of confusion for most.

So if you happen to see a tax form sometime soon, not to worry, just place it in your freshly started current year tax folder and you will be in good shape.

Have a Great Day!