What to Report on the Contributions to an IRA on Form 5498-SA
When you contribute to an IRA or rollover money from another retirement account, you must complete the 5498-SA form. The same is true if you make distributions from a health savings account. The IRS requires this form for tax reporting purposes. Using a postal mail service is also an option.
Contributions to an IRA
This form reports the value of your account at year’s end. Therefore, it is important to make sure you have the correct information on your form, and it is important to keep it with your other tax documents.
5498-SA form reports all contributions to an IRA or Health Savings Account. It also reports amounts rolled over or transferred from other retirement accounts. The amount you contribute will help you claim an IRA contribution deduction.
Rollovers from other retirement accounts
If you’ve been transferring money from a retirement account to an IRA, you must complete the 5498-SA form to declare the amount. While 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, typically sent to you before the end of tax season. However, if you could contribute to your IRA during the previous year, it can be sent earlier. Specifically, you can make contributions during the tax year until April 15, but that deadline has been extended to May 17 for the tax year 2020. When you receive the form, verify the information, especially the total account value. It should match the amount of money you expected to distribute.
It would help if you also kept in mind that a rollover is only allowed once per 12-month period unless the transfer is to a Roth IRA. To avoid confusion, you must follow the instructions in the instructions that come with your IRS form. Alternatively, you can use a separate form for each type of rollover.
Distributions 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 any reason other than medical care, the amount is taxable. If you use it for other than 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 in your account was spent for qualified medical expenses. You are eligible for tax-free distributions if you used the money for a medical expense. However, if you use the money for other purposes, you could be subject to a tax penalty of up to 20% of the amount withdrawn.
Required IRS forms
The IRS forms for 5498-SA track contributions and disbursements from an HSA or a Medicare Savings Account (MSA). These forms are not required to file with your income tax return and are not required to be sent to the IRS. However, they must be filed by the custodian of an HSA or MSA. Those who contribute must also provide a copy to their next of kin.
The IRS forms 5498-SA are filed by individuals who maintain an HSA.
How to file
The total amount of contributions for the previous tax year is shown on Form 5498-SA. This form is available on the IRS website until the end of May. It is a downloadable file that shows contributions deducted from your paycheck. Your contributions are also reported on Form W-2 in Box 12.
To file Form 5498-SA, you must know your Archer MSA account number. You need to submit multiple forms if you have more than one account. You also need to know your gross and excess contributions. Then, you need to enter the number of contributions for 2020. You should also include any contributions made in 2021. Most of the information on the form is informational and is not required for tax preparation.
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