If you complete an IRA rollover, you may receive multiple tax forms to document the movement of funds. While a properly executed rollover is generally not taxable, it is still reportable to the IRS and must be reflected correctly on your tax return.
Understanding which forms you will receive—and how they work together—can help ensure accurate reporting and avoid unintended tax consequences.
Forms Issued for an IRA Rollover
When an IRA rollover occurs, the IRS requires both the distribution and the subsequent contribution to be reported.
Form 1099-R
Form 1099-R reports the distribution from the originating IRA. The full amount distributed will appear in Box 1. Depending on your age at the time of distribution, the form may reflect either an early distribution or a normal distribution.
Even though a rollover is typically non-taxable, the distribution must still be reported on your tax return. To properly report a rollover:
The full amount shown in Box 1 must be included on your return.
The taxable amount should be reported as $0 in Box 2a.
When filing your return, the rollover box must be checked to indicate that the distribution was rolled over into another, or the same, IRA.
Failing to report the distribution and subsequent contribution correctly may result in the IRS treating it as taxable income.
Form 5498
Form 5498 reports contributions made to an IRA, including rollover contributions. This form is issued by the receiving IRA and confirms that the funds were redeposited.
Because IRA contributions can be made up until the tax filing deadline, Form 5498 is typically available in May. The form reports the total amount contributed during the applicable tax year, including rollover amounts.
Supporting Documentation Before Form 5498 Is Available
If you file your tax return before Form 5498 is issued, you can use your account statement from the month in which the rollover contribution was made as supporting documentation. This statement reflects the offsetting contribution and may be helpful for record-keeping or tax preparation purposes.
The IRS One-Rollover-Per-Year Rule
The IRS limits taxpayers to one IRA-to-IRA rollover within any 12-month period, regardless of the number of IRAs they own. This rule applies to rollovers where funds are distributed to the account holder and then redeposited. Additional information regarding this rule can be found here.
It’s important to note this reporting does not apply to direct trustee-to-trustee transfers, where funds move directly between financial institutions without the account holder taking possession.
If you have any additional questions, our support team is glad to help via in-app chat, or by email at support@public.com.
If you have questions about how your rollover should be reported or how it may affect your tax situation, we recommend consulting a qualified tax professional.