5498 Forms › Form 5498 IRA Contribution Types Explained for 2026
At a Glance
Understanding IRA Contribution Types on Form 5498
Form 5498 reports multiple types of contributions made to Individual Retirement Accounts. Each contribution type is reported in a specific box and has its own rules regarding limits, eligibility, and tax treatment. Trustees and custodians must accurately categorize and report each contribution type.
Contribution Types Overview
| Box | Contribution Type | Description |
|---|---|---|
| 1 | Traditional IRA Contributions | Regular contributions to Traditional IRAs (excludes rollovers, SEP, SIMPLE, and Roth) |
| 2 | Rollover Contributions | Amounts rolled over from other retirement accounts |
| 3 | Roth IRA Conversions | Amounts converted from Traditional IRA to Roth IRA |
| 4 | Recharacterized Contributions | Contributions moved between IRA types (Traditional to Roth or vice versa) |
| 8 | SEP Contributions | Employer contributions to Simplified Employee Pension IRAs |
| 9 | SIMPLE Contributions | Contributions to SIMPLE IRA plans |
| 10 | Roth IRA Contributions | Regular contributions to Roth IRAs |
Box 1: Traditional IRA Contributions
Box 1 reports regular contributions made to a Traditional IRA. These contributions may be tax-deductible depending on the participant's income and whether they are covered by an employer retirement plan.
- What to report: Regular Traditional IRA contributions for the tax year
- What NOT to report: Rollovers, conversions, SEP, SIMPLE, or Roth contributions
- Contribution deadline: April 15 of the following year
- Catch-up contributions: Additional amount allowed for individuals age 50 and older
Box 2: Rollover Contributions
Box 2 reports amounts that were rolled over into the IRA from another retirement account. Rollovers allow participants to move retirement funds without triggering taxes or penalties.
- Direct rollovers: Trustee-to-trustee transfers (most common)
- 60-day rollovers: Participant receives funds and deposits within 60 days
- Eligible sources: Other IRAs, 401(k)s, 403(b)s, 457 plans, and qualified plans
Note: Rollover contributions do not count toward annual contribution limits.
Box 3: Roth IRA Conversion Amount
Box 3 reports amounts converted from a Traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA. Conversions are taxable events but allow for tax-free growth and withdrawals in retirement.
- Tax implications: The converted amount is included in taxable income
- No income limits: Anyone can convert regardless of income level
- No limit on amount: You can convert any amount in a given year
- 5-year rule: Converted amounts have a 5-year holding period for penalty-free withdrawal
Box 4: Recharacterized Contributions
Box 4 reports contributions that were recharacterized from one IRA type to another. A recharacterization treats a contribution as if it were originally made to the other IRA type.
- Common scenarios: Traditional IRA contribution recharacterized as Roth (or vice versa)
- Deadline: Must be completed by the tax filing deadline (including extensions)
- Includes earnings: The recharacterized amount includes any earnings or losses
Note: Roth conversions can no longer be recharacterized as of 2018.
Box 8: SEP Contributions
Box 8 reports employer contributions to a Simplified Employee Pension (SEP) IRA. SEP IRAs allow employers to make tax-deductible contributions to employees' retirement accounts.
- Contribution limit: Up to 25% of compensation, subject to annual dollar limit
- Employer-only contributions: Employees cannot make elective deferrals to SEP IRAs
- Contribution deadline: Employer's tax filing deadline (including extensions)
- Eligibility: Self-employed individuals and small business owners commonly use SEP IRAs
Box 9: SIMPLE Contributions
Box 9 reports contributions to a SIMPLE IRA (Savings Incentive Match Plan for Employees). SIMPLE IRAs are designed for small businesses with 100 or fewer employees.
- Employee elective deferrals: Salary reduction contributions made by employees
- Employer contributions: Matching or non-elective contributions from the employer
- Catch-up contributions: Additional amount allowed for age 50+
- 2-year rule: Special early withdrawal penalty applies during first 2 years of participation
Box 10: Roth IRA Contributions
Box 10 reports regular contributions made to a Roth IRA. Unlike Traditional IRA contributions, Roth contributions are made with after-tax dollars and qualified withdrawals are tax-free.
- Income limits apply: High earners may be ineligible or limited in contributions
- No age limit: You can contribute at any age as long as you have earned income
- No RMDs: Roth IRAs are not subject to required minimum distributions during owner's lifetime
- Contribution deadline: April 15 of the following year
Special Contribution Types
Form 5498 also reports several special contribution types in other boxes:
| Box | Special Contribution |
|---|---|
| 13a-13c | Postponed and late rollover contributions (qualified disaster, military, etc.) |
| 14a-14b | Repayments (qualified reservist distributions, disaster distributions, birth/adoption) |
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Frequently Asked Questions About Form 5498 Contribution Types
A rollover (Box 2) moves funds between accounts of the same tax type (e.g., Traditional IRA to Traditional IRA, or 401(k) to Traditional IRA) and is not a taxable event. A conversion (Box 3) moves funds from a pre-tax account (Traditional IRA) to a Roth IRA and IS a taxable event because you're changing the tax treatment of the money.
No. Rollover contributions reported in Box 2 do not count toward your annual IRA contribution limit. This allows you to move large sums from employer plans like 401(k)s into an IRA without affecting your ability to make regular annual contributions.
Yes, you can contribute to both a Traditional IRA (Box 1) and Roth IRA (Box 10) in the same year, but your combined contributions cannot exceed the annual limit. For example, if the limit is $7,000, you could contribute $4,000 to a Traditional IRA and $3,000 to a Roth IRA.
SEP contributions (Box 8) are made by employers, not employees, and have much higher limits (up to 25% of compensation). Regular IRA contributions (Box 1) are made by individuals and have lower annual limits. SEP contributions also have a later deadline (employer's tax filing deadline with extensions) compared to regular IRA contributions (April 15).
Excess contributions are subject to a 6% excise tax for each year they remain in the account. You can avoid the penalty by withdrawing the excess contribution (plus any earnings) before your tax filing deadline, including extensions. The trustee will report the full contribution on Form 5498, and you'll report the excess on your tax return.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.