Form 5498 is an informational form. The IRS requires the form be filed by companies that maintain an individual retirement arrangement (IRA) during the tax year. The taxpayer isn't required to attach Form 5498 to their tax return. But, the 5498 does report an account's fair market value (FMV), which is used to complete Form 8606 when needed.
Follow these steps to enter the IRA's fair market value:
- Go to Screen 13.1 Pensions, IRA Distributions.
- Using the Section List in the lower-left, select the Form 8606 section.
- Find the line for Value of all traditional/SEP/SIMPLE IRAs at 12/31/2020.
- Enter the FMV.
See the Form 1099-R Instructions or Form 5498 Instructions for more information.
