Form 5498 ESA - Deadline for the 2024 Tax Year
Updated on May 06, 2024 - 10:30 AM by Admin, TaxBandits
It’s that time of year again, time for trustees of certain educational savings accounts to report annual information to the IRS using Form 5498 ESA. While this form is generally due to the IRS and the plan beneficiaries by May 31, this year the IRS has provided some additional time to file this form. We will be covering the 5498 ESA deadline and much more in this article.
1. What is Coverdell ESA Form 5498?
The 5498 ESA is a form used to report information about a specific type of education savings account, the Coverdell Education Savings Account. This account is a custodial account or trust set up on behalf of the beneficiary, with the sole purpose of paying for the beneficiary's qualified educational expenses. The IRS requires the most important information about this account is the annual contribution amount. The 5498 ESA must be filed by the entity that is the custodian or trustee of the Coverdell Education Savings Account.
The 5498 ESA must be filed by the entity that is the custodian or trustee of the Coverdell Education Savings Account.
2. When is the deadline for filing Form 5498 ESA?
As mentioned in the opening of this article, the Form 5498 filing deadline is generally May 31. However, the IRS has extended this deadline, which allows custodians some additional time to file Form 5498 ESA.
For tax year 2024, the filing deadline for Form 5498 ESA is May 31, 2025. This is both the deadline for filing with the IRS and distributing form copies to the designated beneficiaries.
3. Information needed to report 5498 ESA Form
The main information that should be reported on Form 5498 is the contributions made to the Coverdell Education Savings Account throughout the year. Contributions should not exceed the annual allowable amount, which is $2000 for the 2024 tax year. Trustees must also report rollover contributions on Form 5498, including direct rollovers and contributions from a military death gratuity.
4. How do you file Form 5498 ESA Online with TaxBandits?
Form 5498 ESA can be submitted to the IRS on paper or electronically. However, the IRS highly recommends e-filing for quick processing and to stay tax compliant.
E-filing your Form 5498 ESA with TaxBandits is simple. You can e-file Form 5498 ESA in minutes with just a few easy steps.
Step 1 : Create a free TaxBandits account or sign in if you already have one.
Step 2 : Choose Form 5498 ESA.
Step 3 : Enter Trustee and Beneficiary information, Coverdell ESA, and rollover contributions.
Step 4 : Review the Form Information
Step 5 : Transmit it to the IRS.
TaxBandits offers the option to distribute your beneficiary copies via postal mail or online access. We ensure that your completed 5498-ESA form adheres to IRS business rules, guaranteeing accurate filing. TaxBandits securely maintains records of the transmitted 5498-ESA forms for 7 years.
E-file Form 5498 ESA for the 2024 tax year in advance through TaxBandits to avoid a last-minute rush.