IRS Form 5498 Questions and Answers

General Information

 

What is the purpose of a 5498?

  • An IRS Form 5498 is an IRS tax form that reports contributions, rollovers, conversions, recharacterizations, and year-end fair market value for traditional IRA, SEP-IRA, SIMPLE IRA, Roth IRA, and Inherited IRA contracts.
  • An IRS Form 5498 provides the information to you and the IRS; however, the form is not filed with the individual tax return. The IRS Form 5498 is only for your records, although a copy can be provided to your tax advisor.

 

When is the IRS Form 5498 mailed?

  • Due to carryback contributions that can be made up until tax filing date (typically April 15) of the following year, the IRS does not require IRS Form 5498s to be mailed until May 31 of the year following the tax year being reported.

 

Who receives an IRS Form 5498?

  • Any traditional IRA, SEP-IRA, SIMPLE IRA, Roth IRA, or Inherited IRA contract owner with a contribution, rollover, conversion, or recharacterization made during the applicable tax year.
  • For Inherited IRAs, an IRS Form 5498 is generated for the deceased and the beneficiary.
  • If only the year-end fair market value (FMV) is reported, Pacific Life will send the IRS Form 5498 to the IRS only and you will not receive a copy automatically. FMV is described in the Frequently Asked Questions below.

 

How is an IRS Form 5498 accessed online?

  • After logging on to Pacific Life's My Account website (username and password are required), follow these instructions:

 

Active & Annuitized Contracts
For contracts in active or annuitized status, access the "My Contract" section, then:

  • For clients with more than one contract, click the appropriate contract number on the contract list. For clients with one contract, proceed to the next step.
  • On the Contract Values page, click or hover over "Contract Information" and select "Document Center" in the drop-down menu.
  • Select the "Tax Documents" section, then the document type corresponding to the desired tax year.
  • When the 5498 opens, click the Printer icon to print either the entire PDF file or specific pages.

Note: IRS Form 5498 information is not accessible for inactive (e.g., fully surrendered, free-looked, etc.) contracts via the My Account website.

Frequently Asked Questions

 

Q: Why didn’t I receive an IRS Form 5498?
A: If you have a traditional IRA, SEP-IRA, SIMPLE IRA, Roth IRA contract and did not have a contribution, rollover, conversion, or recharacterization during the tax year, an IRS Form 5498 will not be sent to the contract owner. However, information concerning the fair market value (FMV) will still be reported to the IRS.

Other reasons you may not have received an IRS Form 5498, include a delay in USPS shipping or outdated mailing information. Please call Customer Service at (800) 722-4448 (or, in New York, 800-748-6907) if you have recently changed your mailing address. IRS Form 5498s are mailed out from Pacific Life to qualifying owners by May 31.

 

Q: What if an IRS Form 5498 has not been received or has been misplaced?
A: The most current IRS Form 5498, as well as those for previous tax years, will be displayed on the My Account website. To access the IRS Form 5498, review the instructions noted above. In addition, a copy of the IRS Form 5498 can be faxed or mailed to the contract owner or the servicing Financial Professional/Producer.

 

Q: Will an IRS Form 5498 be generated for an IRA to IRA direct transfer?
A: No, IRA to IRA direct transfers are not tax reportable; no IRS Form 5498 is generated. However, Pacific Life will still report IRS Form 5498 information to the IRS if there is FMV information.

 

Q: Will an IRS Form 5498 be received for a Roth conversion?
A: Yes.

 

Q: Why is the Fair Market Value listed on the IRS Form 5498 higher than the December 31 value listed on the year-end statement?
A: If the contract had either a Roth conversion or was subject to required minimum distributions (RMDs) in the tax year, the Actuarial Present Value (APV), the value of any future benefits as of a specific date (December 31) that is associated with an annuity product used to fund a retirement plan or account, must be included in the amount that was converted or used in the calculation of the required minimum distribution (RMD). This is required by the IRS.

 

Q: If a withdrawal was taken for an excess contribution, will Pacific Life send a corrected IRS Form 5498?
A: The IRS Form 5498 cannot be corrected. If a withdrawal of an excess contribution was requested, the excess contribution amount will show on the IRS Form 5498. However, an IRS Form 1099-R will be sent to the client next January, which reflects the excess contribution withdrawal.

 

Q: If a contribution was coded incorrectly, can it be corrected?
A: Yes, it can be corrected for the tax year in question. However, a corrected IRS Form 5498 is not automatically sent out. In addition, no corrections can be made to a previous tax year. For a current year correction, call Customer Service at (800) 722-4448 (or, in New York, 800-748-6907) for assistance.

 

Q: How are SEP-IRA and SIMPLE IRA contributions reported?
A: A contribution to a SEP-IRA OR SIMPLE IRA contract is reported for the year in which the contribution is received, regardless of the instructions received with the payment. Pursuant to IRS reporting guidelines, employer contributions to SEP-IRA and SIMPLE IRAs are reported in the calendar year in which the contribution is received. Please refer to the instructions from the IRS for boxes # 8 and #9. This does not prevent you from deducting the IRA portion of the contribution; however, you are responsible for the tax reporting. This matter should be discussed with a tax advisor to review the options that are available.

 

Q: How can an excess contribution be corrected?
A: Please call Customer Service at (800) 722-4448 (or, in New York, 800-748-6907) for assistance.

 

Q: How many IRA rollovers can I perform in a 12-month period?
A: Current tax law only permits one rollover distribution for all IRAs within a 12-month period. For purposes of this one-rollover-per-year limitation, all of your IRAs (including Roth, SIMPLE, and SEP IRAs) are aggregated, so a rollover involving any one of them precludes a rollover involving any other account (except qualified plans) within the next year. If you have additional questions about this one-rollover-per-year limitation, please contact your tax advisor.

To access the IRS Form 5498, review the instructions noted above or click here: IRS Form 5498. In addition, a copy of the IRS Form 5498 can be faxed or mailed to the contract owner or the servicing Financial Professional/Assistant/Producer.

Additional Information

Types of Transfers

  • 1035 (a) Tax Free Exchange: Allows for a tax free exchange of a Non-Qualified annuity or life insurance contract into a new or pre-existing Non-Qualified annuity. The contract registration must be like-for-like and the transfer must be a trustee-to-trustee exchange. No IRS Form 5498 is generated for this exchange. An IRS Form 1099-R will be generated reflecting a distribution code of 6.
  • Direct Transfer: A transfer of a qualified plan type to the same qualified plan type (i.e., IRA to IRA, TSA to TSA). No IRS Form 5498 or IRS Form 1099-R is generated.
  • Direct Rollover: A transfer of a qualified plan type between different plan types (i.e., 401(k) to IRA, TSA to IRA). An IRS Form 5498 will be generated for an incoming rollover. An IRS Form 1099-R will be generated for the distribution.

IRS Form 5498
For specific information regarding an IRS Form 5498, click https://www.irs.gov/forms-pubs/about-form-5498.

For the IRS form 5498, click  http://www.irs.gov/pub/irs-pdf/f5498.pdf.

Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.

Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.

Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. 

Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company. 

The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.

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