Harbor Funds | Understanding Form 5498

When will I receive a tax form to report my IRA contribution?

Form 5498 will be mailed by May 31 if you made contributions for tax year 2020 into a Traditional, Roth, or SEP IRA.

Why did I receive a Form 5498?

Federal law requires Harbor Funds to report contributions, conversions, recharacterizations, and rollovers you made in a tax year, including carry back contributions remitted between January 1 and April 15, 2021. These amounts are indicated on Form 5498. Form 5498 also reports the fair market value of your IRA as of the previous year end balance.

What else is reported on my Form 5498?

Traditional IRA Contributions
Rollovers
Roth IRA Contributions
Roth Conversions
Recharacterized Contributions
SEP Contributions actually made in the calendar year (Jan 1 through Dec 31)
Fair market value of account (December 31 year-end balance)

Why don't I receive a Form 5498 with my other tax forms (ex. Form 1099)?

Since you are able to contribute to your IRA until the tax filing deadline for the prior year (generally April 15th), not including extensions, Form 5498 will not be prepared and filed until May.

Why did I receive a Form 5498 for my recharacterization / conversion?

If you convert or recharacterize funds from one type of IRA to another, the amount is reportable and may be subject to income tax and therefore reported on Form 5498.

Where can I go to find out more information regarding my Form 5498 or any other reportable IRA Form?

You may go the IRS website and research Publication 590-A for contributions to Individual Retirement Arrangements (IRAs) or Publication 590-B for Distributions from Individual Retirement Arrangements (IRAs), or review the Harbor Funds Disclosure Statement & Custodial Agreement for further information.

I made a prior year SEP contribution. Why doesn't this show on my Form 5498?

SEP contributions are reported on Form 5498 for the year in which they are received at Harbor. For example, on the 2019 Form 5498, we do not include SEP contributions designated for 2019 that were made in 2020. These will appear on your 2020 Form 5498.

Why did I receive multiple 5498 Forms?

If you have more than one IRA, a separate Form 5498 must be filed for each plan to which you contributed. Additionally, a separate Form 5498 must be filed for each fund in which you are invested and made contributions.

Why didn't I receive a tax form for my IRA transfer?

Per the Internal Revenue Service (IRS), an IRA transfer of assets is a non-reportable event and does not produce a tax form.

Why didn't I receive a Form 5498?

Harbor Funds will only send a Form 5498 to shareholders 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.

Is it necessary to attach Form 5498 to my income tax return?

You are not required to attach the Form to your tax return; it is for informational purposes only and reflects the information Harbor sends to the IRS.

I received a distribution of an IRA Excess Contribution, but Form 5498 still reflects my entire contribution. Will I receive a revised Form 5498?

Harbor Funds is required to report the entire contribution, including the excess contribution amount, to the IRS. Therefore, a Form 5498 revision is not necessary.

Why is box 11 (required minimum distribution for 2021) checked on Form 5498?

If you attained or will attain age 72 in 2021, Box 11 is checked on the Form 5498 to remind you to take your required minimum distribution for the current tax year. If you do not take the RMD for 2021, you may be subject to a 50% excess accumulation penalty on the amount not distributed.

Please consult with your tax adviser before engaging in any transaction.

Investor Center