What to Report on the Contributions to an IRA on Form 5498-SA

What to report about IRA contributions on Form 5498-SA

When you contribute to an IRA or transfer money from another retirement account, you must fill out Form 5498-SA. The same is true if you are making distributions from a health savings account. The IRS requires this form for tax filing purposes. The use of the postal service is also an option.

IRA contributions

This form shows the value of your account at the end of the year. That’s why it’s important to make sure you have the correct information on the form and it’s important to keep it with your other tax documents.

Form 5498-SA lists all contributions to an IRA or health savings account. It also reports amounts transferred or transferred from other retirement accounts. The amount you contribute will help you claim the IRA contribution deduction.

Transfers from other retirement accounts

If you transferred money from a retirement account to an IRA, you must complete Form 5498-SA to prove the amount. Although the money is not deductible, it will be reported as a contribution on your tax return. This information will be reported in boxes 2 and 3 on Form 5498.

The IRS requires this form, which we usually send you before the end of tax season. However, if you were able to contribute to your IRA within the previous year, it can be sent earlier. Specifically, you can contribute during the tax year until April 15, but this deadline has been extended to May 17 for the 2020 tax year. When you receive the form, verify the information, especially the total value of the account. It should match the amount of money you expect to distribute.

It would help to keep in mind that rollovers are only allowed once per 12-month period, unless it’s a rollover to a Roth IRA. To avoid confusion, you must follow the instructions in the instructions included with your IRS form. Alternatively, you can use a separate form for each rollover type.

Distribution from a health savings account

A health savings account is a retirement account that allows you to save money for qualified medical expenses. If you withdraw money from your account for a reason other than medical care, the amount is taxable. If you use it for non-medical expenses, you could face a tax penalty of up to 20%.

If you have an HSA, you must report your contributions and distributions to the IRS. These documents help the IRS determine whether the money you deposited into your account was spent on qualified medical expenses. You are entitled to tax relief if you used the money for medical expenses. However, if you use the money for other purposes, you may be subject to a tax penalty of up to 20% of the withdrawn amount.

Required IRS forms

IRS forms for 5498-SA track contributions and withdrawals from an HSA or Medicare Savings Account (MSA). These forms do not need to be filed with your tax return and do not need to be sent to the IRS. However, they must be filed by the custodian of the HSA or MSA. Contributors must also provide a copy to their next of kin.

IRS Forms 5498-SA are filed by individuals who have HSAs.

How to rank

The total amount of contributions for the previous tax year is shown on Form 5498-SA. This form is available on the IZS website until the end of May. This is a downloadable file that shows the contributions deducted from your paycheck. Your contributions are also shown on your Form W-2 in box 12.

You must know your Archer MSA account number to file Form 5498-SA. If you have more than one account, you must submit multiple forms. You also need to know your gross and excessive contributions. You then need to enter the number of contributions for 2020. You should also include all contributions made in 2021. Most of the information on the form is informative and not required for tax processing.




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