The IRS requires Edward Jones as an IRA custodian to report contributions, rollovers, conversions and recharacterizations received in a traditional, Roth, SEP or SIMPLE IRA. Form 5498 also reports the fair market value of your IRA account as of December 31, 2016.
Form 5498 is for informational purposes only. You are not required to file it with your tax return; however, you may want to provide a copy to your tax preparer.
As custodian for your retirement account, Edward Jones is required to provide your 2016 Form 5498 by May 31, 2017. This allows Edward Jones time to record any 2016 contributions made to your traditional or Roth IRA up to the April 15 income tax return filing deadline.
Your 2016 Form 5498 reports SEP and SIMPLE contributions made from January 1, 2016, through December 31, 2016. Contributions made in 2017, whether designated for 2016 or 2016, will be reported on the 2017 Form 5498 that we will distribute in May 2018.
A rollover generally occurs when funds are removed from one IRA and deposited to another IRA within 60 days. The distribution from the original IRA was reported to the IRS on Form 1099-R. As custodian for the recipient IRA, we must report the rollover received on Form 5498. This will inform the IRS of the amount received.
Edward Jones is required to report the original contribution on Form 5498, even though it was later removed as an excess contribution. The excess removal will be reported to you and the IRS on Form 1099-R for the year it was removed.
Edward Jones is required to report the original IRA contribution on Form 5498, even though it was recharacterized to your Roth IRA. Form 1099-R reports the amount being removed from your traditional IRA, and Form 5498 reports the amount recharacterized into your Roth IRA.
We send you a Form 5498 if one or more of the following activities occurred in your self-directed retirement account during the tax year:
If you believe you should have received a Form 5498, please contact your financial advisor.
If there was no reportable activity in your self-directed retirement account during the tax year, we will report only the fair market value of your account to the IRS on Form 5498. Reportable activity includes:
The information concerning the fair market value of your IRA as of year-end will be reported to the IRS on Form 5498, but not to you. The fair market value of your IRA as of year-end is provided on your December statement.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.
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