E-File Form 5498-ESA Online for 2024 Tax Year

Who Should File Form 5498-ESA?

Financial institutions, such as banks or credit unions, acting as trustees or custodians of a Coverdell ESA are required to file Form 5498-ESA. They must submit this form for each beneficiary who received contributions to their ESA during the tax year. This includes cases where funds were rolled over from one ESA to another.

Note: The contributors in an ESA do not present this form. It's prepared by the financial organization that operates the account.

Why File Form 5498-ESA?

Filing Form 5498-ESA is essential for both regulatory compliance and accurate record-keeping of Coverdell ESA contributions. Here’s why timely filing matters:

• IRS Compliance- Form 5498-ESA provides a clear record of the IRS about every beneficiary's ESA contribution so as to prevent tax reporting mismatches.
• Accurate recordation of accounts- Filed forms will confirm the amounts contributed or rolled over, which will support clear records for such beneficiaries and financial institutions.
• Facilitates Tax Benefits- ESA account reporting allows the beneficiary to get all possible education-related tax benefits for qualified distributions.
• Avoids Penalties- On-time and accurate filing will help the beneficiary avoid the IRS regulations as it minimizes the opportunity to be advised for potential penalties or audits.

5498-ESA Deadline and Important Dates

Form 5498-ESA is due annually, with specific deadlines to meet IRS requirements:

5498 eFile Info

Electronically-filed 5498 Forms are Directly Transmitted to the IRS from Tax1099.

You will receive IRS acknowledgement of your eFile by email within 3 - 7 business days.

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