IRS Form 5498 ESA: Understanding the Form

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

The IRS Form 5498 Series is a complex group of forms to understand. They all deal with different kinds of accounts that are offered by trustees and often financial institutions. The Form 5498 ESA is geared towards a specific type of educational account that is set up for a beneficiary to pay their educational expenses. Here is a breakdown of the Form 5498 ESA.

Below are the topics covered in this:

1. What is Form 5498 ESA?

The Form 5498 ESA exists specifically to report information about Coverdell Education Savings Accounts (ESA). This is a specific type of educational savings account that is set up to help fund the educational expenses of the plan’s beneficiary. This is an account that is handled by a custodian or trustee. When the account is set up, it must be set up initially as a Coverdell Education Savings Account, otherwise the IRS will not treat it as such.

2. Who is required to file Form ESA?

The 5498 ESA tax Form must be filed by the custodian or trustee of the account. This is the entity that issued the account and oversees the account over the years. This form has two copies, Copy A must be sent to the IRS and Copy B must be distributed to the beneficiary.

3. What information is reported on Form
5498 ESA?

The 5498 ESA form requires you to provide beneficiary and trustee information. You must complete two lines, entering the trustee's name, address, and TIN, as well as the beneficiary's legal name, address, account number, and TIN.

Form 5498 ESA is used to report contributions to a Coverdell Education Savings Account (ESA). Trustees must report the total amount of contributions made to the account for the tax year 2023.

Additionally, trustees must report any transfers of the account, including transfers from one trustee to another during the year, on Form 5498 ESA. Rollovers must also be reported.

4. When is the deadline to file 5498 ESA?

The deadline to file Form 5498-ESA with the IRS is May 31, 2024. This is also the deadline for distributing form copies to all beneficiaries.

5. How do you file Form 5498 ESA with TaxBandits?

E-filing your Form 5498 ESA with TaxBandits is simple. You can e-file Form 5498 ESA in minutes with just a few easy steps.

  • Step 1 : Create a free TaxBandits account or sign in if you already have one.

  • Step 2 : Choose Form “5498 ESA”.

  • Step 3 : Enter Trustee and Beneficiary information, Coverdell ESA, and rollover contributions.

  • Step 4 : Review the Form Information

  • Step 5 : Transmit it to the IRS.

TaxBandits offers the option to distribute your beneficiary copies via postal mail or online access. We ensure that your completed 5498-ESA form adheres to IRS business rules, guaranteeing accurate filing. TaxBandits securely maintains records of the transmitted 5498-ESA forms for 7 years.

E-file your Form 5498 ESA for the 2023 tax year in advance through TaxBandits to avoid a last-minute rush.

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