Understanding Form 5498
Each year, Principal Trust CompanySM provides account holders with Form 5498 (for IRAs), Form 5498-ESA (for Coverdell ESAs) or Form 5498-SA (for HSAs) for their records. These forms display the contributions made to each IRA, ESA, or HSA account for the prior year.
Principal Trust Company mails Form 5498-ESA at the end of April. Form 5498 and Form 5498-SA are mailed at the end of May. Account holders are not required to attach these forms to their annual income tax filing. Principal Trust Company submits the information on these forms to the Internal Revenue Service (IRS) to report prior year contributions*, including any catch-up contributions.
For explanations about each line item on the form, use the Interactive Guide. If you have further questions about Form 5498, Form 5498-ESA, or Form 5498-SA, check the Frequently Asked Questions below or contact Principal Trust Company's Client Contact Center at 800.209.9010. You may download the complete IRS Form 5498 and instructions, IRS Form 5498-SA and Instructions, or IRS Form 5498-ESA and Instructions. Also available is the 2009 version of IRS Instructions for Forms 1099-SA and 5498-SA.
*For 2008 Reporting: Only SEP and SIMPLE IRA contributions actually made in 2008 will be reported in 2008 on a 2008 Form 5498. Contributions for SEP and SIMPLE IRAs made in 2009 for the 2008 tax year will be reported in 2010 on a 2009 Form 5498.
Frequently Asked Questions About Form 5498
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General Questions
- What is Principal Trust Company's role?
- When does Principal Trust Company send this information to the IRS?
- How do I get a copy of my Form 5498
- Where did Principal Trust Company get the figures?
- Where can I find my brokerage account number on the form?
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Form 5498
- What is Form 5498 for?
- What types of contributions are reported on my 2008 Form 5498?
- Why did I receive a Form 5498 for my rollover from one IRA to another IRA?
- Why did I receive a Form 5498 for my recharacterization/conversion?
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Form 5498-ESA
- What is the purpose of Form 5498-ESA?
- What types of contributions are reported on my 2008 Form 5498-ESA?
- Why did I receive a Form 5498-ESA for my rollover from one Coverdell ESA to another?
- Why did I receive a Form 5498-ESA for the transfer of assets into my Principal Trust Company Coverdell ESA?
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Form 5498-SA
What is Principal Trust Company's role?
We offer our brokerage partners and their clients affordable trust, administration, and compliance services for tax-advantaged brokerage accounts.
Principal Trust Company serves as trustee of your retirement plan and is partnered with your broker who handles the investment needs for your plan. As trustee of your plan, we are required to report contributions to the Internal Revenue Service (IRS) on Form 5498. Principal Trust Company is a trade name of Delaware Charter Guarantee & Trust Company.
When does Principal Trust Company send this information to the IRS?The IRS requires this information for the 2008 reporting and has established a June 1, 2009 deadline. We have filed an extension and will provide this information to the IRS no later than June 30, 2009.
How do I get a copy of Form 5498?You can call us at 800.209.9010 or email us your request for a duplicate Form 5498, Form 5498-ESA, or Form 5498-SA.
Where did Principal Trust Company get the figures?We received information for Forms 5498, 5498-ESA and 5498-SA from various sources, including:
- Brokerage account statements
- Investment firm statements
- Checks that we processed
The brokerage/investment account number for your account can be found in the box labeled "account number" at the bottom left-hand corner.
What is Form 5498 for?
Form 5498 reports your IRA contributions for the prior year. As directed trustee for your account, Principal Trust Company provides you with this information for your records. You are not required to attach this form to your income tax return.
What types of contributions are reported on my 2008 Form 5498?- 2008 IRA Contributions
- 2008 Rollover Deposits
- 2008 Roth Contributions
- 2008 Roth Conversions
- 2008 Recharacterized Conversions
- 2007 and 2008 SEP Contributions actually made in 2008
- 2007 and 2008 SIMPLE IRA Contributions actually made in 2008
- *Only SEP and SIMPLE IRA contributions actually made in 2008 will be reported in 2009 on a 2008 Form 5498. Contributions for SEP and SIMPLE IRAs made in 2009 for the 2008 tax year will be reported in 2010 on a 2009 Form 5498.
A rollover occurs when money is distributed from one tax-deferred account and deposited within 60 days to another tax deferred account. This distribution is considered taxable and was reported to the IRS on Form 1099-R. As directed trustee of the IRA receiving the rollover, Principal Trust Company must report the rollover contribution on Form 5498. This lets the IRS know that you deposited the money into another IRA.
Why did I receive a Form 5498 for my recharacterization/conversion?If you convert or recharacterize assets from one type of IRA to another, the amount is subject to income tax. As trustee of your new IRA (to which the contribution was converted), Principal Trust Company reports that activity on Form 5498. This lets the IRS know that you deposited the money into another IRA.
What is the purpose of Form 5498-ESA?
Form 5498-ESA reports your Coverdell ESA contributions for the prior year. As directed trustee for your account, Principal Trust Company provides you with this information for your records. You are not required to attach this form to your income tax return.
What types of contributions are reported on my 2008 Form 5498-ESA?- 2008 Regular Contributions (including those made through April 15, 2009, for the 2008 tax year)
- 2008 Rollover Deposits
- Transfers into the account from other trustees made in 2008
A rollover occurs when money is distributed from one Coverdell ESA and deposited within 60 days to another Coverdell ESA. This distribution is considered taxable and was reported to the IRS on Form 1099-Q. As directed trustee of the account receiving the rollover, Principal Trust Company must report the rollover contribution on Form 5498-ESA. This lets the IRS know that the distribution is not taxable because you deposited the money into another Coverdell ESA.
Why did I receive a Form 5498-ESA for the transfer of assets into my Principal Trust Company Coverdell ESA?If assets transfer from one Coverdell ESA to another, the IRS requires us to include the amount of the transfer in the rollover box. This lets the IRS know that you deposited the money into another Coverdell ESA.
What is Form 5498-SA for?
Form 5498-SA reports your Health Savings Account (HSA) contributions for the prior year. As directed trustee for your account, Principal Trust Company provides you with this information for your records. You are not required to attach this form to your income tax return.
What types of contributions are reported on my 2008 Form 5498-SA?- 2008 Employee Contributions (including those made through April 15, 2009, for the 2008 tax year)
- 2008 Employer Contributions
- 2008 Rollover Deposits
A rollover occurs when money is distributed from one tax-deferred account and is deposited within 60 days to another tax deferred account. This distribution is considered taxable and was reported to the IRS on Form 1099-SA. As directed trustee of the HSA receiving the rollover, Principal Trust Company must report the rollover contribution on Form 5498-SA. This lets the IRS know that you deposited the money into another Archer MSA or HSA.
