5498 Statements to IRA Customers

IRS Reporting Form 5498 “Individual Retirement Information” is used to report IRA contributions and other information. National Life sends 5498 statements to IRA customers during the month of May in accordance with IRS Regulations. Customers should file this statement with their permanent records. (more…)

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NOTICE: 5498s to IRA Customers

IRS Reporting Form 5498 “Individual Retirement Information” is used to report IRA contributions and other information. National Life sends 5498 statements to IRA customers during the month of May in accordance with IRS Regulations.

Customers should file this statement with their permanent records.

National Life is required to report the following information:

  • Contributions made for the filing year
  • Rollover contributions made in that filing calendar year
  • Roth conversion amount
  • Fair Market Value as of December 31st of that filing year
  • Taxable Term Cost for Endowment Annuities
  • Simplified Employee Pension (SEP), SIMPLE IRA (SIM), Roth IRA (RTH), and Recharacterization (RECHAR) indicators
  • SEP, SIMPLE and ROTH CONTRIBUTIONS

*When advised of a late IRA deposit, National Life is required to report new data for qualifying individuals who serve in designated combat zones. These special IRA customers have an additional period after the normal contribution due date of April 15 to make IRA contributions for a prior year. The period is the time the individual was in the designated zone or area plus at least 180 days.   The individual must designate the IRA contribution for a prior year to claim it as a deduction on their income tax return. If you have any customers who could possibly fall into this special reporting class, it is important that National Life be advised when the late contribution is sent in.

If a customer has not made a regular or rollover contribution in that filing year to their IRA, SEP, SIMPLE, or ROTH, they will not receive a hard copy of Form 5498. However, the IRS will be provided with the 12/31 values for all IRA’s.

To assist us in crediting future contributions properly, please encourage customers to clearly indicate on their check or accompanying bill, the year for which the contribution is being made. Unless instructed otherwise, we will assume a contribution is for the year in which it is received.

Should you become aware of a customer who should have received a Form 5498 but did not, please advise Maryse Lamson (802) 229-3663 as soon as possible.

Click here for sample IRS 5498 form.

 

TC95572

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Family Limited Partnerships after IRS Code 2704

This notification was written by Matt Ryan, Director – Advanced Sales Attorney

 

Proposed Treasury Regulations Could Spell End to Valuation Discount Strategy

On August 2, 2016 the Treasury Department and the IRS published regulations under Internal Revenue Code Section 2704 that would eliminate valuation discounts on intra family gifts of Family Limited Partnerships (FLP).  In December 1, 2016 a public hearing will take place after the 90 day public comment period.  Shortly thereafter the Treasury and IRS will issue a final notice and that will become effective 30 days from that issuance.  This may mean that starting in 2017 estate planning practitioners may have one less arrow in their quiver.

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