One of the advantages of a 401k or individual retirement account is that these accounts are portable. Unlike traditional defined-benefit pensions, which are tied to one company, the money accumulated in an IRA or 401k can be rolled over when employees change jobs. But for that rollover to be a non-taxable event, it must be reported correctly. Form 5498 is used to report such rollovers.
Enter the name of the company serving as trustee for the rollover, including the firm's name, street address, city and ZIP code. This information is recorded in the upper left-hand box of Form 5498. Just below that box is a space for the trustee's taxpayer identification number.
Enter the Social Security number of the plan participant in the appropriate box, along with the participant's full name and address.
Provide the amount of IRA contributions in box 1. Use box 2 for any rollover contributions and box 3 for Roth IRA conversions. Box 4 is used to report any recharacterized contributions.
Record the fair market value of the IRA account in box 5. If applicable, the life insurance costs associated with the IRA contributions are entered in box 6.
Use box 7 to indicate the type of IRA being rolled over, such as traditional, Roth, SEP (Simplified Employee Pension) or SIMPLE. Boxes 8 through 10 are used to record the amounts of those rollovers.
Check the check box in section 11 if part of the rollover was a required minimum distribution. The RMD must be taken if the account holder is 70 1/2 years of age or older. If an RMD is involved, the amount is recorded in box 12.