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Form 5498 question for the TTB crowd

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    Form 5498 question for the TTB crowd

    Consider the following:
    -- Person has a 401k plan with a major investment firm. No new money has gone into the fund since the person retired 15+ years ago.
    -- During this calendar year, person will attain age 70 1/2 and now has necessary paperwork in place to take the initial (2018) RMD by the end of the current calendar year.
    -- Web site for plan has a section for "tax documents" and it is possible to retrieve recent Forms 1099-R. (Person has been taking minimal withdrawals, to pay some bills, for the last few years.) The web site states "not all tax documents are viewable on this site."
    -- Friendly customer service representative, when asked about any Form 5498 information, automatically came back with "we cannot give any tax advice" (duh!) and apparently has no idea what a Form 5498 even is.
    -- The service rep did look up the 12/31/2017 account value, "calculated" the 2018 RMD amount, and life continues.

    My basic question is whether a 2017 Form 5498 should have been generated, specifically to show the 12/31/2017 account value in addition to showing the upcoming (2018) RMD amount and due date entered. What say you?

    Related question: Now that RMDs will be in place, can the person expect a 2018 Form 5498 (with similar RMD information) to be issued annually?

    Sorry for the long query, but I wanted my question to be clear. It's equally possible that I am quite confused about the role a Form 5498 plays. (Among other things, isn't that how the IRS receives its information about taxpayer "required RMDs" in the first place??)

    Thanks!

    FE

    #2
    Form 5498 is "IRA Contribution Information", so only IRAs. I don't believe there is any equivalent form for 401(k) plans. I have a solo 401(k) for many years and do not recall ever seeing a Form 5498, and I think I would have if it existed.

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      #3
      Originally posted by Rapid Robert View Post
      Form 5498 is "IRA Contribution Information", so only IRAs. I don't believe there is any equivalent form for 401(k) plans. I have a solo 401(k) for many years and do not recall ever seeing a Form 5498, and I think I would have if it existed.
      I believe you hit the nail on the head! Thanks.
      "Upon further review" I now recall the only Forms 5498 I have seen were related to funds deposited into an IRA (Traditional or Roth) and RMDs (Traditional). The former for Form 8880 issues and the latter for RMD concerns.
      So, it raises the question about how the IRS does get any information related to "necessary" RMDs from a 401k account or similar? ? ?

      FE

      Comment


        #4
        Originally posted by FEDUKE404 View Post
        So, it raises the question about how the IRS does get any information related to "necessary" RMDs from a 401k account or similar? ? ?FE
        It doesn't seem like they do. Even with IRAs, if the IRS has the ability to track down RMDs, why do so many people manage to conveniently "forget" their RMDs, and end up not paying any penalty for doing so?

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