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Overwhelmed about tax reporting for Individual Retirement Accounts, Coverdell ESAs, or Health Savings Accounts? Then, this timely webinar is just what you need. If you haven’t started planning for tax reporting season, it’s not too late. Whether you’re new to tax reporting, or need to freshen up your understanding of the regulations, this webinar will help you make sure your credit union is prepared. In this webinar, you will learn basic tax reporting information on these accounts and more. This webinar will cover IRA, ESA, HSA tax forms and due dates. You will learn to identify due dates for tax forms to account owners and the IRS, and to determine which tax forms are needed for each account type. Learn more at www.nafcu.org/ascensus
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TAX REPORTING RESPONSIBILITIES
Today’s Instructor: Paul Kern CIS, CIP, CISP
©2012 Ascensus, Inc.
www.nafcu.org/aschandouts
Learning Objectives
After completing this session, you will be able to
Identify the IRA, HSA, and ESA tax forms required for contributions and distributions;
Recite the IRA, HSA, and ESA tax form due dates to the account owners and the IRS; and
Analyze current tax year processes to assure accurate reporting and compliance.
©2012 Ascensus, Inc.
Page 1
IRA Tax Reporting Timeline
©2012 Ascensus, Inc.
Page 2
Distribution Occurred
Deadline to
report IRA
distributions and
FMV/RMD
to IRA account
owners
Deadline to
electronically
report IRA
distributions to
the IRS.
Deadline to
make regular
IRA
contributions. Deadline to
report IRA
contributions to
account owners
and IRS.
Regular Contribution
Occurred for Tax Year
2012 IRS Form 1099-R
Traditional and Roth IRAs IRA distributions are reported to the account owner and to the IRS using IRS Form 1099-R.
©2012 Ascensus, Inc.
Pages 2-3
IRA Distributions
Credit unions generally must report all IRA distributions taken during a year. • Report must be sent by January 31 to the
account owner and by March 31 to the IRS.
©2012 Ascensus, Inc.
Page 2
Required Minimum Distributions
The credit union must provide the required minimum distribution (RMD) amount due for the year or it must offer to calculate the RMD amount for each Traditional IRA account owner attaining age 70½ or older. The due date for this form is also January 31.
©2012 Ascensus, Inc.
Page 4
Reporting the RMD to the Account owner
Reporting to the Account owner The credit union is required to notify Traditional account owners age 70½ or older and those approaching age 70½ of the estimated RMD and deadline for the year. • This form must be sent by January 31 every year.
©2012 Ascensus, Inc. Page 4
Reporting the RMD to the IRS
Reporting to the IRS Your credit union is required to notify the IRS if a Traditional account owner is required to receive an RMD for the year indicated on the IRS Form 5498. • Box 11 will be marked.
©2012 Ascensus, Inc.
Page 5
2012 IRS Form 5498
Traditional and Roth IRAs IRA contributions are reported to the account owner and to the IRS using IRS Form 5498.
©2012 Ascensus, Inc.
Page 6
IRA Contributions
©2012 Ascensus, Inc.
Page 6
The credit union is generally required to report all IRA contributions for a given year to the account owner and to the IRS by May 31 of the following year.
FMV Reporting
The credit union is required to report each account's balance as of the close of business on December 31 to the account owner by January 31 and to the IRS by May 31. This is balance is known as the fair market value (FMV).
• There is no formal form for reporting the
FMV.
©2012 Ascensus, Inc.
Page 6
ESA Tax Reporting Timeline
©2012 Ascensus, Inc.
Page 7
Distribution Occurred
Deadline to
report ESA
distributions to
designated
beneficiaries.
Deadline to
electronically
report ESA
distributions to
the IRS.
Deadline to
make regular
ESA
contributions. Deadline to
report ESA
contributions to
IRS.
Regular Contribution
Occurred for Tax Year
Deadline to
report ESA
contributions
to designated
beneficiaries.
2012 IRS Form 1099-Q
Coverdell ESAs ESA distributions are reported to the ESA designated beneficiary and to the IRS using IRS Form 1099-Q.
©2012 Ascensus, Inc.
Pages 7-8
ESA Distributions
Credit unions generally must report all ESA distributions taken during a year. • Report must be sent by January 31 to the
designated beneficiary and by March 31 to the IRS.
©2012 Ascensus, Inc.
Page 7
2012 IRS Form 5498-ESA
Coverdell ESAs ESA contributions are reported to the account owner and to the IRS using IRS Form 5498-ESA.
©2012 Ascensus, Inc.
Page 9
ESA Contributions
©2012 Ascensus, Inc.
Page 9
The credit union is generally required to report all ESA contributions for a given year to the ESA designated beneficiary by April 30 and to the IRS by May 31 of the following year.
HSA Tax Reporting Timeline
©2012 Ascensus, Inc.
Page 10
Distribution Occurred
Deadline to
report HSA
distributions to
account owners Deadline to
electronically
report HSA
distributions to
the IRS.
Deadline to
make regular
HSA
contributions. Deadline to
report HSA
contributions to
account owners
and IRS.
Regular Contribution
Occurred for Tax Year
HSA Distributions
Credit unions generally must report all HSA distributions taken during a year. • Report must be sent by January 31 to the
account owner and by March 31 to the IRS.
©2012 Ascensus, Inc.
Page 10
2012 IRS Form 5498-SA
HSAs HSA contributions are reported to the account owner and to the IRS using IRS Form 5498-SA.
©2012 Ascensus, Inc.
Page 12
2012 IRS Form 1099-SA
HSAs HSA distributions are reported to the account owner and to the IRS using IRS Form 1099-SA.
©2012 Ascensus, Inc.
Pages 10-11
HSA Contributions
©2012 Ascensus, Inc.
Page 12
The credit union is generally required to report all HSA contributions for a given year to the account owner and to the IRS by May 31 of the following year.
In Review...
©2012 Ascensus, Inc.
Pages 13-14
