Helpful FAQs about Form 5498
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The Internal Revenue Service (IRS) Forms 5498 were mailed to clients of Traditional IRAs, Roth IRAs, and SEP IRAs on August 24, 2020, if they made contributions for the tax year 2019. For your reference, below are several frequently asked questions (FAQs) that we have sent to contract holders in this month’s enewsletter to give them general information about the IRS Form 5498.
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The purpose of these FAQs is to provide you and your clients with general information. For additional questions, clients should speak with a tax advisor.
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FAQs
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Q: Why did I receive a Form 5498?
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A: Federal law requires Talcott Resolution to report certain transactions on qualified plans made in 2019, including contributions for the previous year submitted to Talcott Resolution between January 1 and July 15, 2020. These amounts are indicated on IRS Form 5498.
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Q: Why didn’t I receive a Form 5498?
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A: Talcott Resolution will only send a Form 5498 to Contract Holders who have made a contribution to their IRA plan. You will not receive a Form 5498 if there has been no reportable contribution to your IRA. If you do not own a qualified plan with Talcott Resolution, Form 5498 does not apply to your annuity.
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Q: What is reported on Form 5498?
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A: The following items are reported on Form 5498
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      • Traditional IRA Contributions
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      • Rollovers
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      • Roth IRA Contributions
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      • Roth Conversions
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      • Recharacterized Contributions
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      • SEP Contributions made in the calendar year January 1 through Dec 31, 2019
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      • Fair Market Value (December 31, 2019 year-end value)
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Q: Why didn’t I receive a Form 5498 with my other tax documents (i.e. Form 1099-R)?
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A: Since Federal law allowed you to contribute to your IRA until July 15, 2020 for the prior year, Form 5498 is unable to be generated and mailed until August.
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Q: Do I need the Form 5498 in order to complete my 2019 Income Tax Filing?
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A: You are not required to attach the Form 5498 to your tax return; it is for informational purposes only and reflects the information Talcott Resolution sends to the IRS.
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Advisor Note: We have informed clients that neither Talcott Resolution nor its agents or employees provide tax or legal advice. We strongly recommend that they speak with an Investment Professional or tax advisor before making any financial decisions.
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