2022/2023 TAX SEASON: IRS FORM 5498 DELIVERY
The following is provided to answer your questions related to LPL’s mailing schedule for 5498 tax forms.
What is IRS form 5498?
This form reports the contributions, rollovers, and other relevant tax information for traditional, Roth, SEP, and IRAs. For traditional and Roth IRAs, the 5498 form reports information for the prior tax year. For SEP and SIMPLE IRAs, the 5498 form reports information for the calendar year in which the transactions were made. In most cases, you would receive this form only if you made a contribution or rollover for the reported tax year.
Is IRS form 5498 required when filing taxes?
Form 5498 is for informational purposes only and you are not required to file it with your tax return. This form is generally not posted until May because you can contribute to an IRA for the previous year through mid-April. This means that most people will have finished filing their tax returns before they receive this form.
When is it issued?
The IRS deadline for issuing Form 5498 is May 31. This deadline takes into account that contributions to IRAs can be applied toward the prior tax year, provided that the contribution is made by the filing deadline (without extensions) for that year’s income tax returns, which is generally April 15 of the following year. However, the April 15 deadline may be extended in the event of a weekend or holiday. LPL will mail 5498 tax form in 2 waves: February 24 and May 31.
Form 5498 for tax year 2022 is sent by February 24, 2023, if you meet any of the following criteria in your IRA:
- You reached the max contribution limit in 2022 on reportable contributions to a traditional IRA, including a Rollover IRA or SEP, SIMPLE, or Roth IRA by February 1, 2023.
- You rolled money into a traditional IRA, including a Rollover, or SEP, SIMPLE, or Roth IRA
- You converted money from a traditional IRA, including a Rollover, or SEP, SIMPLE, to a Roth IRA
2022 Contribution limits:
- The aggregate contribution limit for traditional and Roth IRAs was $6,000. If you are age 50 and older you may contribute up to $7,000
- For SEP IRAs, the contribution limit was 25% of the employee's compensation up to $61,000
- For SIMPLE IRAs, the salary deferral contribution limit was $14,000.Employees age 50 or older may defer up to $17,000
Note: SEP and SIMPLE IRA contributions are reported to the IRS in the year received, not the year applied for.
Form 5498 for tax year 2022 will be sent to you by May 31, 2023, if you had any of the following activity in your IRA between February 2, 2023, and April 18, 2023:
- You made traditional IRA or Roth IRA contributions for 2022 but did not reach the contribution limit prior to Feb 1, 2023
- You updated contributions for the 2022 tax year
- You re-characterized contributions into a traditional IRA, or SEP IRA
- You converted a traditional, Sep or Simple IRA to a Roth IRA
- You have updated fair market value (FMV), or required minimum distribution (RMD) amounts
- Hard-to-value asset information, if applicable.
What if I do not receive a 5498?
You would not receive a 5498 form if you did not make any contributions, rollovers, or conversions into an IRA accounts.
Colonial River Wealth Management and LPL Financial do not provide tax advice or services.