Question:
I received Form 5498 in the mail a few weeks ago from the brokerage firm where I have my traditional IRA. It shows the IRA contribution I made for last year, but it came after I filed my taxes, so I was confused about what I need to do with it. Should I have submitted this with my tax return?
Answer:
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
IRA administrators must send Form 5498 by May 31 following the tax year of the contribution, so you usually receive the form a few weeks after the tax-filing deadline. You don’t need to do anything with it when you file your taxes, but you should keep it in your files for the future. This form reports the contributions you made to your traditional IRA. It also includes sections reporting any contributions to a Roth IRA, a Simplified Employee Pension (SEP) or a SIMPLE IRA, as well as rollover contributions, Roth conversions and other information.
Keeping Form 5498 can be particularly helpful if you made nondeductible contributions to a traditional IRA. If you made any traditional IRA contributions that were not tax-deductible, then a portion of your withdrawals will be tax-free. If you haven’t kept records of your nondeductible contributions, Form 5498 can provide some clues. The form doesn’t show whether your contribution was tax-deductible, but you can compare it with your old tax returns to see if you deducted the contribution, says Steven Hamilton, an enrolled agent with offices in Chicago and Spring Hill, Fla. (Enrolled agents are tax advisers who can represent taxpayers before the IRS.)
For more information about how to track down records and determine whether a portion of your IRA withdrawal will be tax-free, see How to Calculate Tax-Free and Taxable IRA Withdrawals.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Being an Executor is a Thankless Job: Do It Well AnywayYou can be a "good" executor of an estate, even though carrying out someone's final wishes can be challenging.
-
Question: Are You Planning for a 20- or 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
Getting Out of an RMD Penalty
retirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
