Spirit Rider wrote:
MnD wrote:Nope - no Form 5498 for an inherited IRA. Those are generated when contributions are made, and non-spousal beneficiaries may not contribute to inherited IRA's. Beneficiaries get a 1099-R in years that they take a distribution (RMD or otherwise) but that does not list the fair market value.
Respectively disagree, an inherited IRA most certainly gets a Form 5498. While no contributions are allowed, it lists the fair market value for RMD calculations.
My broker (one of the "big two" discount ones) has not been generating a 5498 for a non-contributory inherited IRA for going on 14 years now.
I checked my paper file and also did an online search at the brokerage 5 years back for all forms generated by the account.
I get a 1099-R and a "gain/loss" statement annually. Nothing that reports to the IRS the fair market value.
Do you have a non-contributory inherited IRA that is generating an annual 5498?
This guideline from another investment firm implies that a holder of a noncontributory IRA taking RMD's would receive a 1099-R but not a 5498.
3. Why am I receiving Form 5498?
You are receiving the form because you made one
or more of the following types of IRS-reportable
activities with regard to your IRA: Traditional IRA
or Roth IRA contributions, rollover contributions,
Roth conversions, recharacterized contributions,
and/or SEP and SIMPLE IRA contributions.
4. What are some transactions that are not
included on Form 5498?
Custodian-to-custodian transfers, where you never
took possession of the assets, are non-reportable
transactions for the IRS and will not be reflected
on Form 5498. In addition, any distributions that
you took during the 2012 tax year were reported
on Form 1099-R issued in January.