2020/2021 IRA Reporting Requirements - 101

What a roller coaster ride the year 2020 was! The Congress passed the most substantial changes to IRAs as we've had in almost 20 years due to the SECURE Act and the CARES Act created nothing but confusion in terminology and IRS Reporting. Getting this information right will make the difference in your clients getting a letter and bill from the IRS or smooth sailing through the tax filing process.

What's the difference between a 1099-R, 5498, 1099-SA, 5498-SA, 1099-Q, 5498-ESA, 8915-E, 8606 and 5329. Are those enough numbers for you?

While we will mostly focus on the IRA reports required by the financial institution vs. the client's own required forms filed with their tax return, the other forms will also have a quick overview. The timing of this informative Webinar is to make sure we have the latest instructions from the IRS in case some of these forms need to be corrected before submission to the IRS by the end of March.

Honestly, the IRS has been dragging their feet on the IRA reporting instructions for the last year for rollovers, repayments and postponed contributions and using the terminology interchangeably. This not only breeds confusion but also many reporting mistakes that may have to be corrected before the IRS filing deadlines.

Covered Topics

  • What should report in each box of the 1099-R and 5498?
  • What distribution codes do we use for Covid-Related Distributions (CRDs)?
  • How does the repayment of the the CRD report to the IRS?
  • How do we report RMDs taken in 2020 that were re-deposited back into the IRA?
  • Who is responsible for showing the IRS 10% penalty exception on pre-59.5 age qualified distributions?
  • What is the difference between a postponed contribution and repayment?
  • How do we correct the reporting after it has been filed with the IRS?
  • What is the difference between Traditional vs. Roth distribution codes and why is it so important to know the difference?

Who Should Attend?

Any employee who is remotely involved with IRAs and answers client's questions regarding the rules, regulations and reporting including: IT Dept, Financial Advisors, Customer/Member Services Reps, Call Centers and Operations Dept who are responsible for checking paperwork and correcting reporting mistakes.