Instructions for IRS Form 5498-ESA "Coverdell Esa Contribution Information"

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Download Instructions for IRS Form 5498-ESA "Coverdell Esa Contribution Information"

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2021
Department of the Treasury
Internal Revenue Service
Instructions for Form
5498-ESA
Coverdell ESA Contribution Information
Section references are to the Internal Revenue Code
Contributions. You must report contributions, including
unless otherwise noted.
rollover contributions, to any Coverdell ESA on Form
5498-ESA. See the instructions under
Box 1
and
Box
2,
Future Developments
later. If no reportable contributions were made for 2021,
For the latest information about developments related to
no return is required.
Form 5498-ESA and its instructions, such as legislation
For contributions made between January 1, 2021, and
enacted after they were published, go to
IRS.gov/
April 18, 2022, trustees and issuers should obtain the
Form5498ESA.
participant's designation of the year for which the
Reminders
contributions are made.
Rollovers and transfers. Report on Form 5498-ESA
In addition to these specific instructions, you should also
all rollovers, including a direct trustee-to-trustee transfer
use the 2021 General Instructions for Certain Information
from one Coverdell ESA to another Coverdell ESA. A
Returns. Those general instructions include information
rollover can be made from certain U.S. Savings Bonds or
about the following topics.
another Coverdell ESA. The contribution of a military
Who must file.
death gratuity to a Coverdell ESA is a rollover
When and where to file.
contribution. Any amount distributed from a Coverdell
Electronic reporting.
ESA may be rolled over to another Coverdell ESA and is
Corrected and void returns.
not taxable if it is paid no later than the 60th day after the
Statements to recipients.
date of such payment or distribution into another
Taxpayer identification numbers (TINs).
Coverdell education savings account, for the benefit of the
Backup withholding.
same beneficiary or a member of the beneficiary's family
Penalties.
who has not attained age 30 as of such date. The
Other general topics.
preceding sentence shall not apply to any payment or
distribution if it applied to any prior payment or distribution
You can get the
General Instructions for Certain
during the 12-month period ending on the date of the
Information Returns
at
IRS.gov/1099GeneralInstructions
payment or distribution.
or go to IRS.gov/Form5498ESA.
Family member. Family members of the designated
Online fillable form. Due to the very low volume of
beneficiary include the beneficiary's spouse. Also
paper Forms 5498-ESA received and processed by the
included are the beneficiary's children, stepchildren, foster
IRS each year, this form has been converted to an online
children, and their descendants; siblings and their
fillable format. You may fill out the form, found online at
children; parents, their siblings, and ancestors;
IRS.gov/Form5498ESA, and send Copy B to the recipient.
stepparents; in-laws; the spouse of any of the foregoing;
For filing with the IRS, follow the applicable procedures if
and any first cousin of the designated beneficiary.
you are required to file electronically, or, for this form
only, if you are qualified to file on paper, send in the
Total distribution, no contributions. Generally, if a
black-and-white Copy A with Form 1096 that you print
total distribution was made from an account during the
from the IRS website.
year and no contributions (including rollovers) were made
for that year, you do not need to file Form 5498-ESA.
Specific Instructions
Distributions. Report distributions from any Coverdell
ESA on Form 1099-Q, Payments From Qualified
File Form 5498-ESA, Coverdell ESA Contribution
Education Programs (Under Sections 529 and 530). Any
Information, with the IRS for each person for whom you
change in the beneficiary of the Coverdell ESA is not
maintained any Coverdell education savings account
treated as a distribution if the new beneficiary is a
family
(ESA) during 2021.
member
(see above) of the prior beneficiary and has not
A Coverdell ESA is a trust or custodial account created
reached the age of 30 (except for a beneficiary with
or organized in the United States exclusively for the
special needs).
purpose of paying the qualified education expenses of an
Statements to participants. If you are required to file
individual who is the designated beneficiary of the trust or
Form 5498-ESA, you must furnish a statement to the
custodial account. The account must be designated as a
beneficiary (participant) by May 2, 2022.
Coverdell ESA at the time it is created or organized in
For more information about the requirement to furnish
order to be treated as a Coverdell ESA for tax purposes.
statements to participants, see part M in the 2021 General
The governing instrument creating the trust must meet the
Instructions for Certain Information Returns.
requirements of section 530(b)(1).
Aug 03, 2020
Cat. No. 34006Q
2021
Department of the Treasury
Internal Revenue Service
Instructions for Form
5498-ESA
Coverdell ESA Contribution Information
Section references are to the Internal Revenue Code
Contributions. You must report contributions, including
unless otherwise noted.
rollover contributions, to any Coverdell ESA on Form
5498-ESA. See the instructions under
Box 1
and
Box
2,
Future Developments
later. If no reportable contributions were made for 2021,
For the latest information about developments related to
no return is required.
Form 5498-ESA and its instructions, such as legislation
For contributions made between January 1, 2021, and
enacted after they were published, go to
IRS.gov/
April 18, 2022, trustees and issuers should obtain the
Form5498ESA.
participant's designation of the year for which the
Reminders
contributions are made.
Rollovers and transfers. Report on Form 5498-ESA
In addition to these specific instructions, you should also
all rollovers, including a direct trustee-to-trustee transfer
use the 2021 General Instructions for Certain Information
from one Coverdell ESA to another Coverdell ESA. A
Returns. Those general instructions include information
rollover can be made from certain U.S. Savings Bonds or
about the following topics.
another Coverdell ESA. The contribution of a military
Who must file.
death gratuity to a Coverdell ESA is a rollover
When and where to file.
contribution. Any amount distributed from a Coverdell
Electronic reporting.
ESA may be rolled over to another Coverdell ESA and is
Corrected and void returns.
not taxable if it is paid no later than the 60th day after the
Statements to recipients.
date of such payment or distribution into another
Taxpayer identification numbers (TINs).
Coverdell education savings account, for the benefit of the
Backup withholding.
same beneficiary or a member of the beneficiary's family
Penalties.
who has not attained age 30 as of such date. The
Other general topics.
preceding sentence shall not apply to any payment or
distribution if it applied to any prior payment or distribution
You can get the
General Instructions for Certain
during the 12-month period ending on the date of the
Information Returns
at
IRS.gov/1099GeneralInstructions
payment or distribution.
or go to IRS.gov/Form5498ESA.
Family member. Family members of the designated
Online fillable form. Due to the very low volume of
beneficiary include the beneficiary's spouse. Also
paper Forms 5498-ESA received and processed by the
included are the beneficiary's children, stepchildren, foster
IRS each year, this form has been converted to an online
children, and their descendants; siblings and their
fillable format. You may fill out the form, found online at
children; parents, their siblings, and ancestors;
IRS.gov/Form5498ESA, and send Copy B to the recipient.
stepparents; in-laws; the spouse of any of the foregoing;
For filing with the IRS, follow the applicable procedures if
and any first cousin of the designated beneficiary.
you are required to file electronically, or, for this form
only, if you are qualified to file on paper, send in the
Total distribution, no contributions. Generally, if a
black-and-white Copy A with Form 1096 that you print
total distribution was made from an account during the
from the IRS website.
year and no contributions (including rollovers) were made
for that year, you do not need to file Form 5498-ESA.
Specific Instructions
Distributions. Report distributions from any Coverdell
ESA on Form 1099-Q, Payments From Qualified
File Form 5498-ESA, Coverdell ESA Contribution
Education Programs (Under Sections 529 and 530). Any
Information, with the IRS for each person for whom you
change in the beneficiary of the Coverdell ESA is not
maintained any Coverdell education savings account
treated as a distribution if the new beneficiary is a
family
(ESA) during 2021.
member
(see above) of the prior beneficiary and has not
A Coverdell ESA is a trust or custodial account created
reached the age of 30 (except for a beneficiary with
or organized in the United States exclusively for the
special needs).
purpose of paying the qualified education expenses of an
Statements to participants. If you are required to file
individual who is the designated beneficiary of the trust or
Form 5498-ESA, you must furnish a statement to the
custodial account. The account must be designated as a
beneficiary (participant) by May 2, 2022.
Coverdell ESA at the time it is created or organized in
For more information about the requirement to furnish
order to be treated as a Coverdell ESA for tax purposes.
statements to participants, see part M in the 2021 General
The governing instrument creating the trust must meet the
Instructions for Certain Information Returns.
requirements of section 530(b)(1).
Aug 03, 2020
Cat. No. 34006Q
Box 1. Contributions (Other Than Amounts in
Truncating beneficiary’s TIN on payee statements.
Box 2)
Pursuant to Regulations section 301.6109-4, all filers of
this form may truncate a beneficiary’s TIN (social security
Enter contributions to a Coverdell ESA made from
number (SSN), individual taxpayer identification number
January 1, 2021, through April 18, 2022, designated for
(ITIN), adoption taxpayer identification number (ATIN), or
2021.
employer identification number (EIN)) on payee
Do not include rollovers in box 1. Report rollovers in
statements. Truncation is not allowed on any documents
box 2.
the filer files with the IRS. A trustee’s or issuer's TIN may
not be truncated on any form. See part J in the 2021
Box 2. Rollover Contributions
General Instructions for Certain Information Returns.
Enter any rollover contributions (including a military death
Account number. The account number is required if you
gratuity and trustee-to-trustee transfer) to this Coverdell
have multiple accounts for a recipient for whom you are
ESA received by you during 2021 (see
Rollovers and
filing more than one Form 5498-ESA. Additionally, the IRS
Transfers, earlier).
encourages you to designate an account number for all
Forms 5498-ESA that you file. See part L in the 2021
General Instructions for Certain Information Returns.
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Instructions for Form 5498-ESA (2021)
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