Form 5498 - Asset Information Reporting Codes and Common Errors

 

Asset Information Reporting Codes

Starting in 2015, IRA trustees, custodians and issuers (in the case of individual retirement arrangements) are required to fill out boxes 15a and 15b on Form 5498, IRA Contribution Information PDF. Certain specified assets require completion of boxes 15a and 15b. These assets and their corresponding codes are as follows:

A. Stock or other ownership interest in a corporation not readily tradable on an established securities market.

B. Short- or long-term debt obligation not traded on an established securities market.

C. Ownership interest in a limited liability company or similar entity (unless the interest trades on an established securities market).

D. Real estate.

E. Ownership interest in a partnership, trust, or similar entity (unless the interest trades on an established securities market).

F. Option contract or similar product not offered for trade on an established option exchange.

G. Other assets not having a readily available Fair Market Value.

H. More than two types of assets (listed in A through G) held in this IRA.

Enter a maximum of two codes in box 15b. If more than two codes apply, enter code H.

IRAs holding non-marketable securities and/or closely held investments in which the IRA owner effectively controls the underlying assets of such securities or investments have a greater potential for resulting in a prohibited transaction.

Common Errors

Incorrect information on Form 5498, IRA Contribution Information, may cause taxpayers to make IRA reporting errors on their tax returns. Common examples of incorrect information include:

  • Reporting the IRA contribution for the wrong year
  • Failing to report the contribution as a conversion from a traditional IRA to a Roth IRA
  • Issuing duplicate Forms 5498
  • Missing or incorrect RMD information
    IRA trustees, issuers and custodians can avoid making these common errors by checking the information on Form 5498 before submitting it to the IRS and providing a copy to the client.

Additional resources