The Mystery of Form 5498: What to Know
You may have received a 2022 Form 5498 from the IRS this month, after the tax filing deadline. Each year Form 5498 is issued in May. Form 5498 is an information reporting form to record 2022 contributions to a Health Savings Account (HSA) or Individual Retirement Account (IRA). A Form 5498 can also be issued if you are starting Required Minimum Distributions (RMDs) from your IRA.
Form 5498 is utilized by financial institutions that are custodians of your account(s) to report to the Internal Revenue Service (IRS). The IRS then utilizes this information to match to tax returns, when applicable. Since the individual income tax filing deadline is mid-April, financial institutions have until May 31st to send Form 5498 to account holders. Individual taxpayers make 2022 contributions in 2022 but also up until the tax filing deadline in mid-April 2023, thus the later deadline for 2022 Form 5498 filing. The IRS also uses Form 5498 to verify RMD distributions.
Taxpayers should review the Form 5498 to confirm it matches contributions and/or RMDs with your already filed 2022 individual tax returns. There is no further action needed beyond that.
If you are a client of Weingarten Associates, please upload any 2022 Form 5498 you receive, but this will not change your 2022 individual tax return filed.
Weingarten Associates is an independent, fee-only Registered Investment Advisor in Lawrenceville, New Jersey serving Princeton, NJ as well as the Greater Mercer County/Bucks County region. We make a difference in the lives of our clients by providing them with exceptional financial planning, investment management, and tax advice.