Irs Form 5498 2017: Fill & Download for Free

To complement Mike and Timothy’s answers here, as well as assist with your tax filings, your Health Savings Account (“HSA”) provider may distribute two forms, IRS Form 5498-SA and IRS Form 1099-SA.Form 5498-SA indicates what contributions you made during the tax year. Note that in addition to your contributions made, this form also includes rollover contributions* as well as fair market value (“FMV”) of the HSA.Form 1099-SA, on the other hand, reports distributions or withdrawals from your HSA during the tax-reporting year. Note Box 3 on Form 1099-SA (2017) indicates the distribution code. Most of the time this will have a 1, but the box makes a record of other types of withdrawals.For instance, because the HSA is also an estate asset at the death of the taxpayer, similar to other savings accounts, the IRS requires reporters to distinguish between distributions to the decedent’s estate and payments to a decedent’s non-spouse beneficiary. Spouses assume the rights of the HSA if listed as beneficiary and enjoy the same tax benefits. However, for others the HSA becomes “Income in Respect of a Decedent.”For more on how the tax code treats HSA transfers at the death of the account holder, see IRS Publication 559, Survivors, Executors, and Administrators.*Note that the IRS distinguishes between “rollover” contributions and trustee-to-trustee transfers. You can transfer funds from one HSA provider to another at any point. A rollover, however, requires you to deposit the funds withdrawn within 60 days. This is a gotcha that applies to other forms of tax deferred savings account rollovers, like IRAs and 401(k)s. Separately, you can also fund your HSA with a distribution from a traditional or Roth IRA.In summary, and as you can see from the proceeding, an HSA can be a very versatile, tax-friendly savings account.For more details on HSAs see IRS Publication 969 Health Savings Accounts and Other-Tax Favored Health Plans, and IRS Instruction for Forms 1099-SA and 5498-SA.

Nothing unless the company gets audited.If the company gets audited, it’ll be assessed penalties for failure to file, which top out for tax year 2017 at $260 per information return filed after August 1, never filed, or filed improperly, with a maximum penalty of $3,218,500 per year ($1,072,500 for small businesses). For tax year 2018, this rises to $270 per return, with a maximum penalty of $3,282,500 per year ($1,094,000 for small businesses).There’s no penalty for failing to file Form 1096 itself, since Form 1096 is just a “cover letter” that accompanies paper filings of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G. Form 1096 is not required for electronic filing, which the IRS greatly prefers.Note that if any of the unfiled information returns had tax withheld (usually, on Form 1099-R), the IRS is almost certain to audit the taxpayer when they receive tax returns from taxpayers who claim payments based on amounts withheld that the IRS has not received.

You can expect to receive IRS Form 5498 if you made contributions to an IRA (Individual Retirement Account) in the preceding tax year. The "custodian" of your IRA, typically the bank or other institution that manages your account, will mail a copy of this form to both you and the Internal Revenue Service. If you have an IRA but made no contributions for the year, the custodian generally won't send you a Form 5498.Form 5498 reports your total annual contributions to an IRA account and identifies the type of retirement account you have, such as a traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA. Form 5498 will also report amounts that you roll over or transfer from other types of retirement accounts into this IRA. When you claim a deduction for your IRA contributions, you should reference the amounts on the Form 5498.The form is required to be sent to you by May 31, following the year to which the contributions relate. Thus, the 2017 form, which is due by May 31, 2018, includes contributions made in 2017 as well as those made by April 18, 2018,Because of the date on which the form is furnished, it is not meant to help you report your contribution. It is used to help the IRS make sure that the amount of IRA deductions on IRA owners’ tax returns matches what the trustee reports. A taxpayer who claims a deduction that is greater than the amount reported on Form 5498 likely will receive a letter from the IRS referencing the discrepancy. The letter will ask for additional taxes, interest and penalties for any tax underpayment resulting from the deduction in excess of the amount reported on the form.Just remember that the form is for your tax records and does not need to be sent with your return. You just need to verify what has been reported matches your records.