The federal government provides tax incentives when you save money for retirement in an individual retirement arrangement account. When you retire and reach age 70, you must take mandatory withdrawals from an existing IRA. Your IRA trustee or custodian must report the activity on your IRA account and the value of your account to the IRS annually on Form 5498.
Form 5498 identifies the type of IRA as either traditional, Roth, Simplified Employee Pension Plan or Savings Incentive Match Plan for Employees. In addition to identification information, the form shows your contributions, postponed contributions, distributions you rolled over into your account, money you converted from a different type of account, repayments and required minimum distributions you took from the account. The form also reports the fair market value of your account.
Distributions and Contributions
The trustee of your IRA account must mail you a copy of Form 5498 by May 31 each year, so that the form includes contributions you made before the income tax deadline of April 15 that apply to the previous year's tax return. Verify that the income you reported for required minimum distributions or the deductions you claimed for IRA contributions on your income tax return match the amounts reported by your trustee on Form 5498. Contact your trustee if there is a discrepancy.