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#186584 - 05/04/04 04:53 PM 5498 Question
QCL Offline
Power Poster
QCL
Joined: May 2002
Posts: 6,259
NW IL
Some of our customers were confused about the wording on our 5498. We are using Alternative One for RMD, but now there is disagreement among staff as to what the word "date" means "....include in the statement the amount of the RMD with respect to the IRA for the calendar year and the date by which the distribution must be made."
There are 2 different thoughts:
1. Date = the date the customer's RMD BEGAN
2. Date = the date this year's RMD must be taken
Which is correct?

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Operations Compliance
#186585 - 05/04/04 06:12 PM Re: 5498 Question
StevenD Offline
Gold Star
StevenD
Joined: Nov 2000
Posts: 489
KY
The instructions for 2003 form 5498 under method 1 says:

Alternative one. Under this method, include in the statement the amount of the RMD with respect to the IRA for the calendar year and the date by which the distribution must be made.

See page 13 of this document (1099R and 5498 form instructions)

http://www.irs.gov/pub/irs-pdf/i1099r03.pdf
Last edited by StevenD; 05/04/04 06:13 PM.
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#186586 - 05/04/04 06:30 PM Re: 5498 Question
MrHawaii Offline
100 Club
Joined: Nov 2002
Posts: 154
#2 - the deadline date for this year's RMD withdrawal. We're phrasing it as "December 31, 2004, unless you turn 70 1/2 in 2004, in which case you have until April 1, 2005, ..." and then each year we just change the year.
You're putting this statement on the 5498? The RMD statement has to go to customers by Jan. 31, are you dropping a 5498 for everybody in January and then another one in May for customers who made deposits between Jan. 1 and April 15?
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#186587 - 05/04/04 09:56 PM Re: 5498 Question
Tisa Offline
Platinum Poster
Tisa
Joined: Jun 2003
Posts: 938
Do you know the way to ...
See this post and this post for info on using the 5498 as a RMD notice. Yeah, you have to try and fit some text into that box to the left of Box 10. Your programmers will love you.

[OK, something's wrong with trying to post links again.... do a search using +FMV +5498 and you'll find the posts I was trying to link to. Take the one dated 12/12/03 in the "IRA Question" thread. There's that post, and one a little farther down in the same thread.]

The "date" in question is the deadline for taking out the RMD, so April 1st of the following year for your "first timers", and December 31st for everyone else. I send out two separate letters, since it's something totally new for the first-year people and they need a little more explanation.
Last edited by Tisa; 05/04/04 10:01 PM.
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#186588 - 05/04/04 11:07 PM Re: 5498 Question
MrHawaii Offline
100 Club
Joined: Nov 2002
Posts: 154
I knew you could use the 5498, I was just shocked that somebody did.
Thank goodness we decided to put it on the annual statement.
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