Where To Enter Form 5498 In TurboTax? Understanding Form 5498

Form 5498, IRA Contributions Information, is a document that reports your IRA contributions to the IRS. If you’re saving for retirement with an IRA (Individual Retirement arrangement), you will get Form 5498 annually. This form mentions all your contributions to the account during the current tax year, which is done by the institution managing your IRA.

So, if you want to know where to enter form 5498 in TurboTax, this guide is for you. Let’s start with understanding what exactly form 5498 is.

Table of Contents

Understanding IRS Form 5498

Your IRS Form 5498 helps report all the different types of IRA contributions you have made and all such account details in the form’s reporting boxes.

First, Box 1 displays the amount you contributed to the IRA.
Box 10 helps cover the amount you place into a Roth IRA.
Box 9 helps report the contributed amounts to SIMPLE (Savings Incentive Match Plan for Employees).
Box 8 helps document SEP (Simplified Employee Pension) contributions.
Also, the contributions, such as conversion or rollover assets, which aren’t deductible, will be reported in boxes 3 and 2 of Form 5498.

Now, if we talk about direct trustee-to-trustee transfers, know that these are not generally reported on Form 5498. This also includes transfers from:

A SIMPLE IRA to some other SIMPLE IRA.
SEP IRA to a traditional IRA or some other SEP IRA.
A traditional IRA to a SEP IRA or some other traditional IRA.
A Roth IRA to some other Roth IRA.

Not sure about what IRA type you have? Don’t worry; your account administrator will help you indicate if you have a SIMPLE, Roth, SEP, or traditional in box 7.

Traditional IRA Contributions

You can make tax-deductible contributions to a traditional IRA, depending on your eligibility. You can also accumulate tax-free earnings within the IRA. This will continue till you need to start making withdrawals. And this withdrawal usually starts when you become 72. Once you start making these withdrawals, you must report the proper amounts as your income on the tax return. You may also need to pay income tax in some situations.

There are certain limits to how much of an amount you can report in Form 5498 box 1, which you can deduct every year.
The contributions must come from your earned income, like self-employment or a job.
Every year, new maximum contribution amounts are imposed by the tax law.
But, there are a few cases where you may not be eligible to take the contribution deduction. This may include whether you are covered under some other tax retirement plan or your partner contributes to another IRA account.

IRA Deadline

One thing you should be aware of about traditional IRA is that even if you make your contributions in the next tax year, the IRS allows you to deduct a few of your IRA contributions from the tax return for the prior year. However, you usually have to make the contribution without failing the filing deadline. Also, while doing this, you don’t need to include extensions.

So, for example, if you are filing the 2023 taxes, your contribution to the traditional IRA via the filing deadline in 2024 might be deductible.
Also, when you contribute to the IRA, it’s essential that you specify the year for what it is for. For this reason, the account administrator has the until later in the year option to send you Form 5498.

Roth IRA Contributions

Well, Roth IRA does offer a few tax advantages. Still, it has a disadvantage, where you cannot use the contributions as a tax deduction. Now, the primary reason these contributions are not deductible is that your retirement withdrawals are usually not taxable.

However, you have the option of taking the saver’s tax credit for the contributions you make. But, for this, your current income has to match a certain level, and you also need to match some other requirements.

Where To Enter Form 5498 in TurboTax?

Now, after knowing IRS Form 5498, you may have a question about what to do with Form 5498. Well, first of all, Form 5498 is not like 1099s or W-2. This means there is no need to enter any details from Form 5498 into your TurboTax account. Usually, you’ll find the information you need for the return on your other paperwork, like a Form 1099-R or a year-end summary statement. So, since there is no requirement for filing Form 5498, you just need to keep it as part of the records.

Entering Form 5498-SA in TurboTax

Form 5498-SA help report your contributions to the Archer MSA, Medicare Advantage MSA, or Health Savings Account (HSA). Also, you don’t have to enter this form into TurboTax as your account custodian only forwards it to you for informational purposes.

However, suppose you made any contributions to these accounts that are not part of the company contributions. In that case, follow these instructions that will help you enter them into TurboTax.

Firstly, head to “Deductions and Credits” under the “Federal” taxes tab.
Then, scroll down to “Medical” and tap the “Start” button right next to “HSA/MSA Contributions.”
After that, on the next screen, choose your account type. Then, hit “Continue.”
Next, answer the questions on your screen “Did you use your Health Savings Account (HSA) to pay for anything in 2022?” using “Yes” or “No.”
Now, type in the details from the 1099-SA. After that, hit the “Continue” button.
Finally, go through all the remaining screens and enter the information required to complete the process.

Conclusion

So, this was everything about where to enter form 5498 in TurboTax. We hope this guide was able to help you get the answer. If you need help using TurboTax taxing software, feel free to get the proper support from MWJ Consultancy. Our technicians are here to provide you with an error-free experience in TurboTax. For 24/7 TurboTax support, contact us at +1 877 469 0298 or info@mwjconsultancy.com.