Instructions For Forms 1099-R And 5498 - Distributions From Pensions, Annuities, Retirement Or Profit-Sharing Plans, Iras, Insurance Contracts, Etc. And Ira Contribution Information - 2016 Page 20
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24Electronic filing. These statements may be furnished
beneficiary, but you must still file Form 5498 for the
electronically using the procedures described in part F of
decedent.
the 2016 General Instructions for Certain Information
If you have no knowledge of the death of an IRA
Returns.
participant until after you are required to file Form 5498
Reporting to the IRS. If an RMD is required, check
(May 31, 2017), you are not required to file a corrected
box 11. See page 22. For example, box 11 is checked on
Form 5498 nor furnish a corrected annual statement.
the Form 5498 for a 2017 RMD. You are not required to
However, you must still provide the date-of-death
report to the IRS the amount or the date by which the
valuation in a timely manner to the executor or
distribution must be made. However, see the Caution
administrator upon request.
following the Box 11 instructions, later, for reporting RMDs
In the case of successor beneficiaries, apply the
to participants.
preceding rules by treating the prior beneficiary as the
For more details, see Notice 2002-27 on page 814 of
decedent and the successor beneficiary as the
Internal Revenue Bulletin 2002-18 at
beneficiary. Using the example above (Brian Willow as
irbs/irb02-18.pdf
as clarified by Notice 2003-3 on
beneficiary of Joan Maple), when that account passes to
page 258 of Internal Revenue Bulletin 2003-2 at
Brian's successor beneficiary, Maurice Poplar, Form 5498
irbs/irb03-02.pdf.
and the annual statement for Maurice should state
“Maurice Poplar as beneficiary of Brian Willow.” The final
Inherited IRAs. In the year an IRA participant dies, you,
Form 5498 and annual statement for Brian Willow will
as an IRA trustee or issuer, generally must file a Form
state “Brian Willow as beneficiary of Joan Maple” and will
5498 and furnish an annual statement for the decedent
show the FMV as of the date of Brian's death or year-end
and a Form 5498 and an annual statement for each
valuation, depending on the method chosen.
nonspouse beneficiary. An IRA holder must be able to
identify the source of each IRA he or she holds for
For more information about the reporting requirements
purposes of figuring the taxation of a distribution from an
for inherited IRAs, see Rev. Proc. 89-52, 1989-2 C.B. 632.
IRA. Thus, the decedent's name must be shown on the
Disaster relief reporting. Special tax law provisions and
beneficiary's Form 5498 and annual statement. For
reporting instructions may apply when the president
example, you may enter “Brian Willow as beneficiary of
declares a location to be a major disaster area. To
Joan Maple” or something similar that signifies that the
determine the location of and special rules applicable to
IRA was once owned by Joan Maple. You may abbreviate
individual federally declared disaster areas, go to IRS.gov
the word “beneficiary” as, for example, “bene.”
and enter the keyword “disaster” in the upper right hand
For a spouse beneficiary, unless the spouse makes the
corner. Then click on “Tax Relief in Disaster Situations.”
IRA his or her own, treat the spouse as a nonspouse
The information provided includes:
beneficiary for reporting purposes. If the spouse makes
A list of the areas for which relief has recently been
the IRA his or her own, do not report the beneficiary
granted,
designation on Form 5498 and the annual statement.
News Releases detailing the scope of the relief and any
An IRA set up to receive a direct rollover for a
special reporting instructions, and
nonspouse designated beneficiary is treated as an
A link to the Federal Emergency Management Agency's
inherited IRA.
list of federal disaster declarations.
Fair market value (FMV). On the decedent's Form
See the instructions for boxes 13a through 13c for
5498 and annual statement, you must enter the FMV of
reporting postponed contributions, later.
the IRA on the date of death in box 5. Or you may choose
Qualified settlement income. Qualified settlement
the alternate reporting method and report the FMV as of
income received in connection with the Exxon Valdez
the end of the year in which the decedent died. This
litigation may be contributed to a traditional or Roth IRA.
alternate value will usually be zero because you will be
See P.L. 110-343, Division C, sec. 504 for contribution
reporting the end-of-year valuation on the beneficiary's
limitations and Box 2. Rollover Contributions, later.
Form 5498 and annual statement. The same figure should
not be shown on both the beneficiary's and decedent's
Special reporting for U.S. Armed Forces in designa-
forms. If you choose to report using the alternate method,
ted combat zones. A participant who is serving in or in
you must inform the executor or administrator of the
support of the Armed Forces in a designated combat zone
decedent's estate of his or her right to request a
or qualified hazardous duty area has an additional period
date-of-death valuation.
after the normal contribution due date of April 15 to make
IRA contributions for a prior year. The period is the time
On the beneficiary's Form 5498 and annual statement,
the participant was in the designated zone or area plus at
the FMV of that beneficiary's share of the IRA as of the
least 180 days. The participant must designate the IRA
end of the year must be shown in box 5. Every year
contribution for a prior year to claim it as a deduction on
thereafter that the IRA exists, you must file Form 5498 and
the income tax return.
furnish an annual statement for each beneficiary who has
not received a total distribution of his or her share of the
Under section 219(f), combat zone compensation that
IRA showing the FMV at the end of the year and
is excluded from gross income under section 112 is
identifying the IRA as described above.
treated as includible compensation for purposes of
determining IRA contributions.
However, if a beneficiary takes a total distribution of his
or her share of the IRA in the year of death, you need not
A qualifying participant is:
file a Form 5498 nor furnish an annual statement for that
Serving, or has served in a combat zone;
-20-
Instructions for Forms 1099-R and 5498 (2016)
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