Advisor Insights

3 Misleading IRS Forms

Natalie Choate

A trio of IRS forms can lead you astray regarding proper tax treatment of your retirement benefits.

Form 5498 for inherited IRA: The first is IRS Form 5498, the "information return" your IRA provider must file with the IRS for every single IRA it administers. A copy is also sent to the IRA owner. Filed in the spring each year, the form tells the IRS the name, address, and Social Security number of the owner of the IRA, and what the account was worth at the end of the prior year.