Is a custodian required to submit a corrected 5498
Hi there,
If it’s after April 15th, is a custodian required to submit a corrected 5498 if a customer requests it, for a contribution that was marked incorrectly (due to a mistake made by the customer)?
Permalink Submitted by Alan - IRA critic on Mon, 2016-06-06 16:17
Generally no. Custodians only report contributions made, not modified by taxpayer driven changes such as withdrawal of excess contributions or recharacterizations. Taxpayers must explain what they did with an explanatory statement with their tax return so the IRS knows that the 5498 contribution has been modified. For those that omit this statement, the IRS can often determine what was done by the 1099R reporting a recharacterized or withdrawn contribution. There could be exceptions, such as changes due to custodian error which can only be corrected by the custodian and where there will be no other transactions processed.