5498 Tax Forms for Beneficiary IRA Accounts
Hello,
Can an explanation please be provided as to why 5498 tax forms can go out in January for Beneficiary/Inherited IRA accounts, instead of in May when most are mailed out to the account holders?
Is it possible that it is due to the fact that Beneficiary IRA accounts can not receive direct contributions, therefore there would be no “carryback” period applied?
Any help on this would be greatly appreciated…Thank you!
Permalink Submitted by Alan - IRA critic on Tue, 2018-01-02 23:18
Yes, that is the reason. All the beneficiary 5498 needs to report is the year end value of the account and that an RMD is required for the year the 5498 is received and date due. It is optional to provide the RMD amount, and most custodians do not as in some cases they don’t have the data to know what the RMD would be.