The trustee reports the year-end account value to the IRA owner on Form 5498
in Box 5.
On Form 5498
, which is filed annually with information on IRA account value and whether a distribution is required, IRA custodians must reveal the presence of hard-to-value assets and the asset type.
In addition, the IRS plans to modify Form 5498
to require the plan administrator or IRA trustee to report that the rollover was accepted after the deadline and probably to indicate a self-certification has been received.
An IRA trustee reports a rollover contribution received during a year on Form 5498
, "IRA Contribution Information," for that year.
According to frequently asked questions at myra.gov, contributors to an account are not required to report contributions or earnings to the IRS on federal tax forms, but the IRS and taxpayers will receive Form 5498
, IRA Contribution Information, reporting them from Comerica Bank, the trustee custodian financial institution.
After all, the insurance company will have to report that value to the IRS on Form 5498
Heckman IRA," (2) the Form SS-4, Application for Employer Identification Number, which he filed in 2003 to obtain a taxpayer identification number for Prairie Capital, identifying him as "general managing member of Prairie"; and (3) the Form 5498
, IR/1 Contribution Information, which listed him as the owner of the IRA.
Fair market value (FMV)--On Form 5498
, IRA Contribution Information, the trustee holding an IRA account reports to the owner and to the IRS the value of that account as of year's end (i.e., December 31).
The recharacterization will require several filings, including Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts; Form 5498
, IRA Contribution Information (detailing the amounts and earnings); and Form 8606, Nondeductible IRAs.
Note that the Form 4506-T can be used to obtain transcripts of other filings including information returns (Form W-2, Form 1099 series, Form 1098 series or Form 5498
Custodians must send Copy B of Form 5498
to the client by June 1, and furnish fair market value information and RMD, if applicable, by Feb.
Under the final regulations, IRA trustees are required to notify the IRS of the account's existence via Form 5498
, but not the amount of the distribution.