Form 5498 ESA - Deadline for the 2021 Tax Year

Updated on May 06, 2022 - 10:30 AM by Admin, TaxBandits

It’s that time of year again, time for trustees of certain educational savings accounts to report annual information to the IRS using Form 5498 ESA. While this form is generally due to the IRS and the plan beneficiaries by May 31, this year the IRS has provided some additional time to file this form. We will be covering the 5498 ESA deadline and much more in this article.

Let’s cover the following topics:

1. What is Coverdell ESA Form 5498?

The 5498 ESA is a form used to report information about a very specific type of education savings account. This type of account is the Coverdell Education Savings Account. This account is a custodial account or trust that is set up for a beneficiary. The sole purpose of this account is to pay the qualified educational expenses of the beneficiary. This account is usually set up on behalf of the beneficiary. The most significant information that the IRS wants to know about this account is the annual contribution amount that was made.

The 5498 ESA must be filed by the entity that is the custodian or trustee of the Coverdell
Education Savings Account.

2. When is the deadline for filing Form 5498 ESA?

As mentioned in the opening of this article, the Form 5498 filing deadline is generally May 31, however, the IRS has extended this deadline. This extended deadline allows custodians some additional time to file the Form 5498 ESA.

For tax year 2021, the deadline to file the Form 5498 ESA is May 31, 2022. This is both the deadline for filing with the IRS and distributing form copies to the designated beneficiaries of these plans.

3. Information needed to report 5498 ESA Form

The main information that must be reported on the Form 5498 is the contributions made throughout the year to the Coverdell Education Savings Account. Contributions may not exceed the annual allowable amount. For the 2020 tax year this amount is $2000. Trustees must also report rollover contributions on the Form 5498. This includes a direct rollover and any contribution from a military death gratuity.

4. How to file Form 5498 ESA Online for 2021 with TaxBandits?

There are two options for filing the 5498 ESA Form. It can be mailed to the IRS or can be e-filed. The IRS recommends e-filing for quick processing.

There are only a few simple steps to e-filing the Form 5498 ESA with TaxBandits.

  • Create your free TaxBandits account. Already an existing client? Just sign in!

  • Select the form you wish to file, “Form 5498 ESA”.

  • Enter the Trustee’s (your) details, this includes name, address, and TIN.

  • Enter the Beneficiary details, this includes their name address, TIN, and account number.

  • Enter the Coverdell ESA contributions.

  • Enter any rollover contributions.

  • Review your form, pay the filing fee, and transmit Form(s) 5498 ESA to the IRS.

TaxBandits is an IRS authorized e-file provider with over a decade of experience in the IRS e-filing industry. We support both e-filing with the IRS and postal mailing options for recipient copies. You even provide your beneficiaries online access to view and download their Form 5498 ESA through TaxBandits.

E-file Form 5498 ESA securely and accurately with TaxBandits!

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