Permalink Submitted by Alan - IRA critic on Mon, 2018-08-06 23:10
Form 5498 is not issued by qualified plans, only by IRA custodians. The decedent and IRS receive a year of death 5498 for inherited IRA. The beneficiaries and IRS receive Form 5498 for all IRAs, but the amount and due date for the RMDs are not reported.
Permalink Submitted by TaxLadyEA2010 on Fri, 2018-08-10 12:39
I recently inherited in 2017 a Traditional IRA from my mother and I did not receive any 5498 in May. The IRA custodian issued a date of death report. I was told that only the FMV at the end of the year would be reported to the IRS. I was told to look at statements to get the FMV at the end of the year to calculate the RMD.
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-10 15:36
The 5498 processing for your mother would be continued until the date the IRA was retitled as inherited plus some processing lag time. She should have received a 5498 in May only if she made a 2017 contribution. The FMV reporting is on a January cycle except that a 5498 for both decedent and beneficiary should be issued for the current year after a reasonable time from the retitling date. It appears in this case that the custodian does not intend to issue that 5498, and there is minimal IRS oversight regarding inherited IRA reporting or RMD compliance. Granted, the 5498 Inst are confusing at best.
Permalink Submitted by Alan - IRA critic on Mon, 2018-08-06 23:10
Form 5498 is not issued by qualified plans, only by IRA custodians. The decedent and IRS receive a year of death 5498 for inherited IRA. The beneficiaries and IRS receive Form 5498 for all IRAs, but the amount and due date for the RMDs are not reported.
Permalink Submitted by TaxLadyEA2010 on Fri, 2018-08-10 12:39
I recently inherited in 2017 a Traditional IRA from my mother and I did not receive any 5498 in May. The IRA custodian issued a date of death report. I was told that only the FMV at the end of the year would be reported to the IRS. I was told to look at statements to get the FMV at the end of the year to calculate the RMD.
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-10 15:36
The 5498 processing for your mother would be continued until the date the IRA was retitled as inherited plus some processing lag time. She should have received a 5498 in May only if she made a 2017 contribution. The FMV reporting is on a January cycle except that a 5498 for both decedent and beneficiary should be issued for the current year after a reasonable time from the retitling date. It appears in this case that the custodian does not intend to issue that 5498, and there is minimal IRS oversight regarding inherited IRA reporting or RMD compliance. Granted, the 5498 Inst are confusing at best.