Form 5498 - Deadline for the 2023 Tax Year

Updated on May 22, 2024 - 10:30 AM by Admin, TaxBandits

Form 5498 is a tax form the IRS uses to track contributions to your Individual Retirement Account (IRA). It provides information about the amount of money you have put into your IRA, any rollovers you have made, and the value of your account. For the 2023 tax year, financial institutions are required to send Form 5498 to the account holder and the IRS by May 31, 2024. This means that you expect to receive your recipient copy around that time. Keep reading this article to learn more about the Form 5498 deadlines and potential penalties.

Let’s cover the following topics:

1. What is IRS Form 5498?

Finally, there is the SIMPLE IRA. Much like the SEP IRA, it is suitable for self-employed individuals. This stands for “Savings Incentive Match PLan for Employees”. Employers are required to make contributions, and employees can also contribute to their IRA. Contributions are tax-deductible, but withdrawals are taxed.

2. Who should file 5498?

Form 5498 must be filed by the entities that maintain the IRA, also referred to as the trustee or issuer. The trustee is usually a bank or financial institution. This form should be completed for every individual who has an IRA with the financial institution; these individuals are referred to as participants. If the participant has established more than one IRA plan with the same trustee, a separate Form 5498 must be filed for each plan.

3. When is the deadline for filing Form 5498?

The deadline for filing Form 5498 with the IRS is typically May 31, whether you file on paper or electronically. Recipient copies should be distributed by May 31, 2024, except reporting Fair Market Value (FMV) and Required Minimum Distributions (RMD), which should have been distributed by January 31, 2024.

4. What are the penalties for late filing of Form 5498?

If the trustee or issuer fails to file Form 5498, you may be subject to IRS late filing penalties, which depend on how late the trustee or issuer files it. Here are the potential penalties for filing Form 5498 late or not filing it at all.

Condition Minimum penalty
Less than 30 days late $60 / return
31 days late, but before Aug 1 $120 / return
After August 1 or Not at All $310 / return
Intentional Disregard $630 / return

5. Simplify 5498 E-filing and Recipient Copy Distribution with TaxBandits!

TaxBandits is an IRS-authorized e-file service provider supporting various tax forms, including 1099 series, 94x series, and ACA Forms.

Follow these simple steps to e-file Form 5498:

  • Step 1: Create a free TaxBandits account!

  • Step 2: Choose "Form 5498" and the Tax Year.

  • Step 3: Enter the Trustee, Participant, and IRA information.

  • Step 4: Review and Transmit to the IRS.

Suppose the trustee or issuer has chosen postal mail or online access services to distribute the recipient copies; TaxBandits will provide the 5498 Form copies to the recipients on behalf of the filer.

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