IRA: Tax Reporting
The Internal Revenue Service (IRS) requires certain transaction reporting within the IRA
Tax forms for eligible accounts will be published by January 31 (Form 1099-R) and by May 31 (Form 5498). These forms display the IRA distributions and IRA contributions made for the previous tax year.
Select from the following for additional information.
What To Expect
IRA tax forms do report: deposits, withdrawals, rollovers, conversions, recharacterizations, year end fair market value, and US tax withholding from withdrawals.
IRA tax forms do not report: cost basis, sale proceeds, payments-in-lieu, dividends, credit interest, debit interest, foreign tax withholding, and trustee-to-trustee transfers.
Reconciling Transactions
Your Interactive Brokers monthly and annual activity statements list all IRA cash deposits and withdrawals, as well as broker-to-broker asset transfers via ACATS. The account statements provide the NAV for each transaction. Contribution and distribution tax years and codes do not appear on the activity statements.
In order to obtain specific IRA contribution/distribution designations, contact Client Service by Chat or Inquiry/Trouble Ticket via Account Management.
IRA Tax Corrections
Tax correction requests for open IRAs must be received in writing to Interactive Brokers, not Equity Trust Company, through the secure Inquiry/Trouble Ticket via Account Management.
For closed IRAs, we kindly ask you to submit correction request using the form available on our website through our Messaging System.
Understanding Form 1099-R
The IRS requires that any distribution or cash withdrawal taken in the prior year be reported by the account's administrator. This form reports the IRA distributions made from each IRA account type.
Data displayed is received from the withdrawals, conversions, and recharacterizations in your IRA. This may include money distributed to another tax-deferred account as a rollover, conversion, or recharacterization.
For explanations about each line item on the form, read the instructions for Participants or contact IB's Customer Service.
Understanding Form 5498
The IRS requires that any contribution or cash deposit received in the prior year be reported by the account's administrator. This form reports the IRA contributions made from each IRA account type. Generally, the tax form is published by May 31, but may be issued no later than June 30.
The data shown on the form includes the following:
- Prior Calendar Year's December 31 Fair Market Value
- Prior Year's Contributions
- Prior Year's Rollover Deposits
- Prior Year's Roth Conversions
- Prior Year's Recharacterizations
- SEP Contributions made in the Prior Year
For explanations about each line item on the form, read the instructions for Participants or contact IB's Customer Service.
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Disclaimer: IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a q