Anyone get their 5498 for tax year 2019

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sycamore
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Anyone get their 5498 for tax year 2019

Post by sycamore » Sat Jun 06, 2020 3:10 pm

For tax year 2019, in May I got a 5498 for my HSA at Fidelity. No 5498 yet for my Roth IRA at Vanguard. I made my IRA contribution early in 2019.

https://thelink.ascensus.com/articles/2 ... box-by-box indicates the IRS pushed the deadline for sending out 5498 until July (related to IRA contribution being pushed out, so it makes sense).

Obviously no real problem here with not having the 5498 yet. Just wondering if anyone got a 5498 for their Roth or Trad IRA showing a 2019 contribution.

BogleTaxPro
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Re: anyone get their 5498 for tax year 2019

Post by BogleTaxPro » Sat Jun 06, 2020 5:14 pm

Oooo. Good question. Schwab went ahead and sent them out in mid-May (I assume they'll send a corrected one to anyone who contributes later). eTrade just sent out an email that since the deadline for 2019 contributions is now July, they'll send it out by end of August. I haven't heard from Vanguard yet. Their website https://investor.vanguard.com/taxes/tax-forms/ (quoted below) doesn't seem to be *totally* updated yet for this situation, but since I haven't heard from them I assume it'll also come sometime July/August:

You'll get a 5498 if you owned a retirement account (like an IRA or employer-sponsored plan account) and:

Made a contribution (including catch-up contributions) to an IRA between January 1, 2019, and July 15, 2020.
Converted to a Roth IRA.
Completed a rollover into an IRA.
Recharacterized a contribution.

While Vanguard sends a copy of this form to the IRS, it generally isn't necessary when you're preparing your tax returns.

However, it may be used the following year to help determine whether or not you need to take a required minimum distribution (RMD).
When it will be ready

Mid-May (for all account types).

Why May? Because contributions can be made until April 15 for the previous tax year.

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Eagle33
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Re: anyone get their 5498 for tax year 2019

Post by Eagle33 » Sat Jun 06, 2020 9:52 pm

My guess is mid August, since VG in the past provided 1-month past tax filing deadline.
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MP123
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Re: anyone get their 5498 for tax year 2019

Post by MP123 » Sat Jun 06, 2020 10:12 pm

I received a 5498 from Schwab in mid May for a contribution made prior to 12/31/19.

Not sure how everyone is handling more recent contributions with all the deadline changes this year.

tomd37
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Form 5498 Tax Year 2019

Post by tomd37 » Sun Jun 07, 2020 10:34 am

I just checked my Vanguard account online and Form 5498 for tax year 2019 has not yet been issued for my 2019 Roth conversion. I assume that is because of the extended filing date until July 15, 2020 for 2019 returns and maybe there are other items reported on a 5498 that are impacted by the delay.

In view of the removal of requirements for 2020 RMDs, I intend to do a conversion of what would have been my 2020 RMD. Will I run into any problems in doing a 2020 Roth conversion prior to the July 15th date. I think not because if I remember correctly conversions must be done by December 31st each year and conversions are not impacted by the filing delay to July 15th. Just looking for confirmation of my thoughts.
Tom D.

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Re: anyone get their 5498 for tax year 2019

Post by LadyGeek » Sun Jun 07, 2020 11:18 am

^^^ I merged tomd37's post into the on-going discussion. The combined thread is in the Personal Finance (Not Investing) forum (tax form).
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Alan S.
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Re: Anyone get their 5498 for tax year 2019

Post by Alan S. » Sun Jun 07, 2020 11:28 am

Due date for 2019 Form 5498 has been extended to 8/31/2020. The following is copied from IRS Notice 2020-35:
4. Form 5498 series
With respect to the Form 5498, IRA Contribution Information, Form 5498ESA, Coverdell ESA Contribution Information, and the Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, the due date for filing and furnishing the forms is postponed to August 31, 2020. The period beginning on the original due date of those forms and ending on August 31, 2020, will be disregarded in the calculation of any penalty for failure to file those forms. Penalties with respect to such a postponed filing will begin to accrue on September 1, 2020.
This is consistent with the former 5/31 deadline being 46 days after the contribution deadline (4/15). The 2020 deadline provides the same time frame after the 2020 contribution deadline of 7/15.

tomd37
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Re: Anyone get their 5498 for tax year 2019

Post by tomd37 » Sun Jun 07, 2020 11:51 am

Sorry Alan, but unless I don't fully understand what you are saying, I don't see an answer about the timing of my conversion. Can I do a Roth conversion now and have it applied to my 2020 tax situation or must I wait until some future date to do the conversion? The 2019 conversion is history now and will just wait for the 5498 for that year when issued.
Tom D.

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Re: Anyone get their 5498 for tax year 2019

Post by Alan S. » Sun Jun 07, 2020 11:59 am

tomd37 wrote:
Sun Jun 07, 2020 11:51 am
Sorry Alan, but unless I don't fully understand what you are saying, I don't see an answer about the timing of my conversion. Can I do a Roth conversion now and have it applied to my 2020 tax situation or must I wait until some future date to do the conversion? The 2019 conversion is history now and will just wait for the 5498 for that year when issued.
Tom , no need to wait. You can convert anytime between now and year end and it will generate a 1099R for 2020. If you are doing a QCD, for this year only you can do that before or after your 2020 conversion. Next year you will again have to make sure your QCDs are completed before your 2021 RMD is completed.

tomd37
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Re: Anyone get their 5498 for tax year 2019

Post by tomd37 » Sun Jun 07, 2020 4:36 pm

Thank you Alan for your last reply. I have already done my 2020 QCD and in 2021 will continue with my QCD first, followed by RMD, and a possible Roth conversion after those two. Normally when I do my RMD I have funds withheld to cover both my RMD tax bill and for any planned conversions. This year with no RMD I will be doing quarterly estimated tax payments starting July 15th for the first two. Thanks again for all you do on this and other forums.
Tom D.

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Electron
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Re: Anyone get their 5498 for tax year 2019

Post by Electron » Wed Jul 29, 2020 12:54 pm

A family member just told me that Form 5498 posted to their Vanguard account two days ago. Here is the information posted on the site.

https://investor.vanguard.com/taxes/tax-forms/

Form 5498
When it will be ready
Mid-August (for all account types).
Why August? Because contributions can be made until July 15th for the previous tax year.

This brings up an interesting question for anyone with a rollover that used a tax preparation service. What documentation should be submitted to support the rollover prior to receiving Form 5498?
Electron

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sycamore
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Re: Anyone get their 5498 for tax year 2019

Post by sycamore » Wed Jul 29, 2020 12:57 pm

Electron wrote:
Wed Jul 29, 2020 12:54 pm
A family member just told me that Form 5498 posted to their Vanguard account two days ago.
...
Thanks for posting. And I just got an email from Vanguard that my 5498 is now available online.

Planner01
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Re: Anyone get their 5498 for tax year 2019

Post by Planner01 » Wed Jul 29, 2020 1:38 pm

I just got the notification of this form from Vanguard for the Roth 2019 conversion. What am I supposed to do with it? Roth’s don’t have the RMD, so what’s the use of printing the form?

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sycamore
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Re: Anyone get their 5498 for tax year 2019

Post by sycamore » Wed Jul 29, 2020 1:58 pm

Planner01 wrote:
Wed Jul 29, 2020 1:38 pm
I just got the notification of this form from Vanguard for the Roth 2019 conversion. What am I supposed to do with it? Roth’s don’t have the RMD, so what’s the use of printing the form?
At a minimum, verify the information on it is correct. E.g., if you made a contribution but the form doesn't show it, I'd want to get it fixed as the IRS might think you didn't make the contribution.

I agree it's not worth printing. Just download it for your records.

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neurosphere
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Re: Anyone get their 5498 for tax year 2019

Post by neurosphere » Wed Jul 29, 2020 2:33 pm

Planner01 wrote:
Wed Jul 29, 2020 1:38 pm
I just got the notification of this form from Vanguard for the Roth 2019 conversion. What am I supposed to do with it? Roth’s don’t have the RMD, so what’s the use of printing the form?
The timing/year of certain Roth conversions affects the taxability of some distributions (e.g. a 5 year rule might apply), which is why they are reported to you. Whether your particular conversion has the possibility of any restrictions is known only to you. The form is evidence of the year and amount of the conversion, should you need it. Note that in another thread, a poster mentioned he was able to get many year of 5498s from Vanguard, from even before they were available online. That was good news to me, as I didn't know I should keep a copy until I had about 10 years of contributions. :D
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Re: Anyone get their 5498 for tax year 2019

Post by LadyGeek » Wed Jul 29, 2020 3:11 pm

^^^ Thanks for mentioning the Roth conversion. I'm planning to do one this year for the very first time. I looked at the form instructions:
Box 3. Shows the amount converted from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA in 2020. Use Form 8606 to figure the taxable amount.
For 2020, I'll also need Form 8606.
Use Form 8606 to report:
* Nondeductible contributions you made to traditional IRAs;
* Distributions from traditional, SEP, or SIMPLE IRAs, if you have a basis in these IRAs;
* Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs; and
* Distributions from Roth IRAs.
I also downloaded Form 5498 today.
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neurosphere
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Re: Anyone get their 5498 for tax year 2019

Post by neurosphere » Wed Jul 29, 2020 3:28 pm

LadyGeek wrote:
Wed Jul 29, 2020 3:11 pm
^^^ Thanks for mentioning the Roth conversion. I'm planning to do one this year for the very first time. I looked at the form instructions:
Box 3. Shows the amount converted from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA in 2020. Use Form 8606 to figure the taxable amount.
For 2020, I'll also need Form 8606.
Use Form 8606 to report:
* Nondeductible contributions you made to traditional IRAs;
* Distributions from traditional, SEP, or SIMPLE IRAs, if you have a basis in these IRAs;
* Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs; and
* Distributions from Roth IRAs.
I also downloaded Form 5498 today.
Roth conversions are also reported on 1099-Rs. Which forces me to step back a bit and think. In the case of a year with an isolated Roth conversion, is the 5498 redundant?
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes".

Alan S.
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Re: Anyone get their 5498 for tax year 2019

Post by Alan S. » Wed Jul 29, 2020 5:05 pm

If all you did was a conversion, the 1099R is all you need to file your return, and if you file by the usual due date the 5498 would not yet be issued anyway.

However, the 5498 still serves some secondary purposes and you should retain them after checking they accurately reflect what you already reported or will report:
1) Confirms your Roth conversion basis amount for purposes of reporting later distributions.
2) Shows the year of your conversion contribution for purposes of the conversion 5 year holding period.
3) Confirms that your funds actually were deposited into a Roth IRA since the 5498 is issued on the receiving account. The 1099R does not document where they went. There have been cases where an indirect rollover conversion was deposited into the wrong IRA account.

NOTE: If you rolled over a pre tax 401k to your Roth IRA, the 5498 will report a rollover, not a conversion. Technically, a conversion is funded only from an IRA distribution, not a qualified plan distribution.

abyan
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Re: Anyone get their 5498 for tax year 2019

Post by abyan » Wed Jul 29, 2020 8:33 pm

sycamore wrote:
Sat Jun 06, 2020 3:10 pm
For tax year 2019, in May I got a 5498 for my HSA at Fidelity. No 5498 yet for my Roth IRA at Vanguard. I made my IRA contribution early in 2019.

https://thelink.ascensus.com/articles/2 ... box-by-box indicates the IRS pushed the deadline for sending out 5498 until July (related to IRA contribution being pushed out, so it makes sense).

Obviously no real problem here with not having the 5498 yet. Just wondering if anyone got a 5498 for their Roth or Trad IRA showing a 2019 contribution.
Funny you should ask. Mine from Vanguard, for 2019, came in LAST NIGHT. It was mom’s actually, for a Roth conversion done last December. My uncle who was doing her taxes thought I was nuts when I told him that they never issued the form.

N.Y.Cab
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Re: Anyone get their 5498 for tax year 2019

Post by N.Y.Cab » Thu Jul 30, 2020 8:20 am

I downloaded the 5498-SA from the provider website just like any tax form. There is also the 1095-C that’s also good to keep for your records.

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Re: Anyone get their 5498 for tax year 2019

Post by neurosphere » Thu Jul 30, 2020 8:50 am

abyan wrote:
Wed Jul 29, 2020 8:33 pm
Funny you should ask. Mine from Vanguard, for 2019, came in LAST NIGHT. It was mom’s actually, for a Roth conversion done last December. My uncle who was doing her taxes thought I was nuts when I told him that they never issued the form.
But the 1099-R which also reported the 2019 Roth conversion came much earlier, I assume. IRA contributions could be made until July 15th, so 5498s could only be prepared after that date. Why is it nuts? :D
If you have to ask "Is a Target Date fund right for me?", the answer is "Yes".

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Re: Anyone get their 5498 for tax year 2019

Post by rkhusky » Thu Jul 30, 2020 9:41 am

neurosphere wrote:
Thu Jul 30, 2020 8:50 am
abyan wrote:
Wed Jul 29, 2020 8:33 pm
Funny you should ask. Mine from Vanguard, for 2019, came in LAST NIGHT. It was mom’s actually, for a Roth conversion done last December. My uncle who was doing her taxes thought I was nuts when I told him that they never issued the form.
But the 1099-R which also reported the 2019 Roth conversion came much earlier, I assume. IRA contributions could be made until July 15th, so 5498s could only be prepared after that date. Why is it nuts? :D
+1
It actually came earlier than I expected. Usually it arrives in May with a 4/15 contribution deadline. I didn’t expect them until August with a 7/15 deadline.

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Re: Anyone get their 5498 for tax year 2019

Post by 123 » Sat Aug 01, 2020 3:31 pm

Our daughter just received her 5498 today for 2019 for a Schwab Roth account contribution. The contribution for tax year 2019 was just made in early July (last month). Interesting that the 5498 arrived before the monthly statement showing the contribution.
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