Form 5498 is an informational return your IRA custodian sends to you and the IRS; you do not attach it or enter it as a single item on your tax return. Where the numbers on Form 5498 go on your taxes depends on which box holds them. A deductible Traditional IRA contribution lands on Schedule 1, Line 20. A non-deductible contribution goes on Form 8606. A Roth contribution does not appear on your return at all. A Roth conversion runs through Form 8606 and then onto Form 1040, Lines 4a and 4b. The rest of the form is record-keeping.
One quirk to know before you start matching numbers: because IRA contributions for the prior year can be made through April 15, custodians have until May 31 to issue Form 5498.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 You will almost always file before it arrives. File from your own records, then check the form against what you reported.
Box 1 — Traditional IRA Contributions
Box 1 shows what you put into a Traditional IRA for the tax year.2Internal Revenue Service. Form 5498 – IRA Contribution Information Where that number goes depends on whether it is deductible.
If neither you nor your spouse is covered by a workplace retirement plan, the full contribution up to the annual limit is deductible. Enter the deductible amount on Schedule 1 (Form 1040), Line 20, labeled “IRA deduction.”3Internal Revenue Service. Instructions for Form 1040 It flows into your adjusted gross income on the main Form 1040.
If you or your spouse is covered by a workplace plan, the deduction phases out based on modified adjusted gross income. Inside the phase-out range you get a partial deduction; above it, none. Use the worksheet in the Form 1040 instructions or Publication 590-A to calculate the partial amount, then put that number on Schedule 1, Line 20.4Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500
When the Contribution Is Non-Deductible: Form 8606
If your income puts you above the phase-out, the contribution is non-deductible. It doesn’t reduce this year’s taxes, but it creates basis: after-tax dollars in your IRA that should not be taxed again on withdrawal.
Report the non-deductible amount on Line 1 of Form 8606 (Nondeductible IRAs). The form maintains a running total of your after-tax dollars across all your Traditional IRAs.5Internal Revenue Service. Form 8606 – Nondeductible IRAs File Form 8606 every year you make a non-deductible contribution, even if you took no distributions.
Skipping Form 8606 is one of the most expensive mistakes in IRA tax planning. Without it, the IRS treats your entire IRA balance as pre-tax money, so every dollar you withdraw in retirement is taxed, including dollars you already paid tax on. The failure-to-file penalty is $50, but the real cost is decades of double taxation. Proving your basis is your responsibility.6Internal Revenue Service. Instructions for Form 8606
Box 10 — Roth IRA Contributions
Box 10 reports Roth contributions.2Internal Revenue Service. Form 5498 – IRA Contribution Information They are made with after-tax dollars and are never deductible. Box 10 does not go on Form 1040, Schedule 1, or any other form. It exists so the IRS can confirm you stayed within contribution limits and Roth income eligibility rules.
The one place your Roth contribution figure may show up on a return is Form 8880 — see the Saver’s Credit section below.
Box 2 — Rollovers
Box 2 shows money you moved from one IRA to another or from a workplace plan into an IRA.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 A qualified rollover isn’t taxable. You don’t enter Box 2 anywhere; the distribution side is already reported on the Form 1099-R from the sending custodian, and that 1099-R is what you reconcile on your return. Treat Box 2 as the receiving custodian’s confirmation that the money arrived.
Box 3 — Roth Conversions
Box 3 shows amounts converted from a Traditional IRA to a Roth IRA during the year.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 A conversion is taxable because pre-tax money is moving into an account that will eventually pay out tax-free.
Work the conversion through Part II of Form 8606. Line 16 captures the net amount converted. The form separates out any non-deductible basis you had and calculates the taxable portion on Line 18.5Internal Revenue Service. Form 8606 – Nondeductible IRAs The taxable amount from Line 18 goes on Form 1040, Line 4b. The full gross conversion amount goes on Line 4a.
The Pro Rata Rule
If you have any pre-tax money in any Traditional, SEP, or SIMPLE IRA anywhere, the IRS treats all those balances as a single pool when you convert. You cannot convert only your non-deductible contributions and leave pre-tax money behind.
Form 8606 divides your total non-deductible basis by your total year-end Traditional, SEP, and SIMPLE IRA balance to determine what percentage of the conversion is tax-free. The rest is taxable. If you have $93,000 in pre-tax IRA money and add $7,000 in non-deductible contributions, only 7% of any conversion escapes tax. The calculation uses year-end balances, not the balance on the conversion date.
If you’re planning a backdoor Roth, large pre-tax IRA balances will undercut it. Some people roll existing Traditional IRA funds into a workplace 401(k) before converting, since 401(k) balances aren’t part of the pro rata calculation.
Boxes 8 and 9 — SEP and SIMPLE Contributions
Box 8 reports SEP contributions and Box 9 reports SIMPLE contributions.2Internal Revenue Service. Form 5498 – IRA Contribution Information These do not go on Schedule 1, Line 20.
Employer SEP contributions are deducted on the business’s return. If you’re self-employed, your SEP deduction goes on Schedule 1, Line 16. SIMPLE IRA salary deferrals are already excluded from the wages reported on your W-2, so there is no separate personal deduction to claim. Boxes 8 and 9 confirm what went in; the tax treatment happens through payroll or the business return.
Boxes 5, 11, 12a, 12b, 15a, and 15b — Informational Only
Box 5 is the fair market value of your IRA on December 31.2Internal Revenue Service. Form 5498 – IRA Contribution Information It doesn’t go on your return, but keep it. It’s the starting point for calculating your Required Minimum Distribution the following year.
Box 11 is a checkbox indicating whether an RMD is required for the following year. Boxes 12a and 12b show the RMD deadline and amount. Note the warning printed on the form: an RMD may still be required even if Box 11 is not checked. Don’t rely on the checkbox alone if you’re near or past RMD age.
Boxes 15a and 15b appear only if your IRA holds alternative assets like real estate, private stock, or partnership interests, flagged with letter codes A through H.7Internal Revenue Service. Form 5498 – Asset Information Reporting Codes and Common Errors They don’t affect your return, but they signal that the Box 5 fair market value needs to reflect a defensible independent valuation.
If Box 1 or Box 10 Exceeds the Contribution Limit
An amount above the annual limit is an excess contribution. The IRS imposes a 6% excise tax on the excess for each year it stays in the account.8Office of the Law Revision Counsel. 26 U.S. Code 4973 – Tax on Excess Contributions to Certain Tax-Favored Accounts and Annuities The 6% compounds annually until you fix it.
You can avoid the penalty by withdrawing the excess and any earnings before the due date of your return, including extensions. The earnings portion is taxable in the year the contribution was made.9Internal Revenue Service. IRA Year-End Reminders You can also apply the excess to the following year’s limit, though the 6% tax still applies for the original year.
If you owe the excise tax, report it on Form 5329. Traditional IRA excess contributions go in Part III; Roth IRA excess contributions go in Part IV. The tax flows to Schedule 2 (Form 1040), Line 8.10Internal Revenue Service. Form 5329 – Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts
Using Box 1 or Box 10 for the Saver’s Credit
Lower- and moderate-income taxpayers who contribute to an IRA may qualify for the Retirement Savings Contributions Credit, or Saver’s Credit. Claim it on Form 8880. Enter your IRA contributions — Traditional and Roth, but not rollovers — on Line 1.11Internal Revenue Service. Form 8880 – Credit for Qualified Retirement Savings Contributions The figures come from Box 1 and Box 10 of your Form 5498. The credit is not available if you’re claimed as a dependent, were a full-time student, or fall under the form’s age rule.
What to Do With the Form Itself
Keep Form 5498 with your tax records. You will need Box 5 for next year’s RMD calculation, and you will need the running record of Box 1 and Box 10 amounts to defend your IRA basis if the IRS ever asks. When the form arrives in May, compare its numbers to what you reported. If Box 1, Box 3, or Box 10 doesn’t match the contribution, conversion, or non-deductible amount on your return, an amended return may be in order.