The IRS sends Forms 5498 and 8606 to report activity in your individual retirement account (IRA). Form 5498 summarizes your IRA contributions and value, while Form 8606 reports nontaxable amounts like after-tax contributions or Roth conversions. Here's what each form covers, when you'll get them, and how they apply to your Gusto Retirement IRA.
IRS Form 5498 is an informational form your IRA provider sends to you and the IRS each year. It summarizes key details about your IRA, including:
The type of IRA, like traditional, Roth, SEP, or SIMPLE
Regular and rollover contributions you made to your traditional or Roth IRA
Roth conversion amounts to your Roth IRA
Amounts you recharacterized between a traditional and Roth IRA
The fair market value (FMV) of your IRA as of Dec. 31 of the prior year
The amount and due date if you need to take a required minimum distribution (RMD) for the year
Note: Form 5498 is not filed with your federal tax return. It gives you a chance to check that the details your IRA custodian reported to the IRS match your own records for contributions and rollovers that tax year.
IRA providers have until May 31 to file Form 5498 with the IRS, so you may get this form after you have already filed your taxes.
The later deadline exists because IRA rules let account owners make prior-year contributions up until the federal tax filing deadline. Waiting until May 31 lets providers account for all contributions.
If you have a Gusto Retirement IRA, your Form 5498 will be available by May 31 in the Tax documents or IRS section of your IRA dashboard. We cannot provide this document before that deadline.
Pro tip: If you want to review your Gusto Retirement IRA contribution history before your Form 5498 is ready, go to the Transactions section of your dashboard.
Employers can make SEP IRA contributions for the prior year up until the business's tax filing due date, plus extensions. The IRS requires providers to report SEP IRA contributions on Form 5498 for the year they're actually received, not the year they're made for.
This means your Form 5498 may list a prior-year SEP IRA employer contribution under the current year. This is expected and does not affect how the contribution applies for tax purposes.
IRS Form 8606 reports activity involving nontaxable (after-tax) assets in your IRA.
You may need to file Form 8606 if any of these happened during the tax year:
You made a contribution to your traditional IRA and claimed a tax deduction for all or part of it
You had after-tax amounts in your IRA — from IRA contributions you did not deduct or rollovers of after-tax amounts from your 401(k) or 403(b) plan — and you took a distribution from your traditional, SEP, or SIMPLE IRA
You converted amounts from your traditional, SEP, or SIMPLE IRA to a Roth IRA, unless you recharacterized (reversed) the entire amount
You received a distribution from your Roth IRA
Important: If you are not sure whether you need to file it, consider consulting a qualified tax professional.
This information is general and for informational purposes only. It does not replace specific tax, legal, or financial advice that considers all relevant facts and circumstances. Consult a qualified financial adviser or tax professional before relying on this information.