Form 5498-ESA (2021)

What Is Form 5498 ESA

Form 5498 ESA, also known as the Coverdell ESA Contribution Information form, is a tax document sent by trustees or issuers of a Coverdell Education Savings Account (ESA) to report contributions, rollover contributions and the fair market value of the account. It is essential for tax reporting as it provides the information necessary for individual taxpayers to calculate potential tax benefits related to educational expenses.

What Do I Do With Form 5498 ESA

Receiving a 5498 ESA form indicates contributions were made to your ESA during the year. Here are the situations where the information is relevant:

• Use the data to confirm the amounts contributed to the ESA and to verify the non-deductibility of these contributions.
• If a rollover occurs, it should be reported on this form to ensure it is not mistakenly counted as a new contribution subject to annual limits.
• Retain form 5498 ESA for tax records. It helps in keeping track of lifetime contribution limits and can serve as proof of contributions for educational expenses.

How To Fill Out Form 5498 ESA Instruction

1. Gather Information:

Obtain the Trustee's or Issuer's TIN (Taxpayer Identification Number).

Have the Beneficiary's TIN and personal details ready (name, address, etc.).

Know the contributions made to the Coverdell ESA in 2021 and any rollovers.

2. Trustee's or Issuer's Information:

Write the Trustee's name, street address, city or town, state or province, country, and ZIP or foreign postal code in the space provided at the top of the form.

3. Trustee's or Issuer's TIN:

Enter the Trustee's or Issuer's TIN.

4. Beneficiary’s Information:

Beneath the Trustee’s/Issuer’s TIN, write the Beneficiary's name.

Enter the Beneficiary's TIN.

Provide the Beneficiary's street address, including apartment number if applicable, city or town, state or province, country, and ZIP or foreign postal code.

5. Account Number:

If applicable, include an account or unique number the trustee/issuer assigned to distinguish the Beneficiary's account in the "Account number" section.

When to File IRS Form 5498 ESA

The 5498 ESA tax form is typically issued by May 31 of the year following the tax year to which the contributions relate. It’s not submitted with your tax return but is used to report contributions made to your ESA between January 1 and April 15 that are designated for the prior tax year.