Typically sometime late each year or very early in a tax year, the IRS issues their updates to the Form 1099R, the Form 5498 and the general instructions for both forms for the current year. June 2018 has come and gone, and we are still waiting for most of the reporting guidance for 2018.
On June 28, surprisingly, the IRS did issue the updated Form 5498, which contains a page of basic instructions so that the taxpayers understand what the boxes on the form indicate.
These instructions contained a few changes that we thought we would highlight before the balance of the instructions/forms are revised.
Revisions
1. Beginning in 2018, a taxpayer may complete a rollover of a loan offset amount from a qualified plan or 403(b) plan into another plan or an IRA no later than the tax filing due date for the year that the loan is deemed distributed (generally when the other assets are distributed). (A loan offset is a loan that is outstanding at the point of a distributable event, typically separation from service. The value of the loan note at that point in time may be rolled over to another employer plan or to an IRA.) On the Form 5498, a code “PO” was added to report this rollover in box 13c.
2. For participants who serve in designated combat zones and are making postponed IRA contributions, the code “PL115-97” was added for the Sinai Peninsula of Egypt.
3. Clarification was also added that for contributions/rollovers reported in box 13, such contributions are not reported in boxes 1 and 2 (regular contributions or rollover contributions).
For any other revisions we will need to wait for the “Instructions for Forms 1099-R and 5498,” to be issued for 2018. More to come…
Susan D. Diehl, CPC, QPA, ERPA, is President, PenServ Plan Services, Inc. and Chair of the NTSA Communications Committee.
On June 28, surprisingly, the IRS did issue the updated Form 5498, which contains a page of basic instructions so that the taxpayers understand what the boxes on the form indicate.
These instructions contained a few changes that we thought we would highlight before the balance of the instructions/forms are revised.
Revisions
1. Beginning in 2018, a taxpayer may complete a rollover of a loan offset amount from a qualified plan or 403(b) plan into another plan or an IRA no later than the tax filing due date for the year that the loan is deemed distributed (generally when the other assets are distributed). (A loan offset is a loan that is outstanding at the point of a distributable event, typically separation from service. The value of the loan note at that point in time may be rolled over to another employer plan or to an IRA.) On the Form 5498, a code “PO” was added to report this rollover in box 13c.
2. For participants who serve in designated combat zones and are making postponed IRA contributions, the code “PL115-97” was added for the Sinai Peninsula of Egypt.
3. Clarification was also added that for contributions/rollovers reported in box 13, such contributions are not reported in boxes 1 and 2 (regular contributions or rollover contributions).
For any other revisions we will need to wait for the “Instructions for Forms 1099-R and 5498,” to be issued for 2018. More to come…
Susan D. Diehl, CPC, QPA, ERPA, is President, PenServ Plan Services, Inc. and Chair of the NTSA Communications Committee.
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