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.