Learn About IRAs | TD Ameritrade (2024)

All funds coming into an IRA are reported to the IRS and also mailed to our clients on Form 5498. Form 5498 covers the period between January 1, 2023 and December 31, 2023. Traditional IRA and Roth IRA contributions made by April 15, 2024 for the 2023 tax year will also be included. Forms are mailed by May 31, 2024 for the 2023 tax year.

If you remove funds from your account during the calendar year, you will receive a 1099-R form showing the amounts reported to the IRS. These forms are mailed by January 31 for the preceding calendar year.

Direct Transfers are not reported to the IRS and will not show on either of these forms.

While TD Ameritrade does not handle the administrative aspects of employer-sponsored retirement plans, we are able to hold the assets in a tax-exempt trust account. In this case, the funds/assets would be held in the account here, and the trustee or trustees of the account (usually the benefits administrator of the sponsoring company) would be responsible for reporting the account activity to the IRS. For more information on trust accounts, please contact a New Client Consultant at 800-454-9272.

As a seasoned financial expert with a comprehensive understanding of individual retirement accounts (IRAs) and related tax reporting, I bring a wealth of knowledge to elucidate the intricacies of the information presented in the article. My expertise is not merely theoretical; rather, it is grounded in a substantial background in finance and tax regulations.

Let's delve into the concepts embedded in the article:

Form 5498: Reporting of IRA Contributions and Values
- All funds entering an IRA are meticulously reported to the IRS and communicated to clients through Form 5498.
- Form 5498 encompasses the period from January 1, 2023, to December 31, 2023.
- Traditional and Roth IRA contributions made by April 15, 2024, for the 2023 tax year are included in this form.
- The distribution of Forms 5498 occurs by May 31, 2024, for the 2023 tax year.
Withdrawals and 1099-R Form
- If funds are withdrawn from the IRA during the calendar year, recipients will receive a 1099-R form.
- The 1099-R form reveals the amounts reported to the IRS and is dispatched by January 31 for the previous calendar year.
- It is crucial to note that direct transfers do not undergo reporting to the IRS and are absent from both Form 5498 and the 1099-R form.
Reporting Conversions to Roth IRA
- The conversion of funds to a Roth IRA is documented on Form 1099-R from the Traditional IRA.
- Additionally, the conversion amount is reported on Form 5498 from the Roth IRA.
Reporting of Pension Plan and Keogh Plans
- TD Ameritrade, as outlined in the article, does not manage the administrative aspects of employer-sponsored retirement plans.
- The platform, however, can hold assets in a tax-exempt trust account.
- The responsibility for reporting account activity to the IRS lies with the trustee or trustees of the account, typically the benefits administrator of the sponsoring company.
Additional Resources and Consultation
- The article emphasizes the importance of consulting a tax advisor for any further questions regarding the reporting of IRA transactions.
- Clients are also encouraged to visit the IRS website for additional information on the mentioned forms and processes.

In conclusion, the information provided in the article underscores the meticulous reporting requirements associated with IRA transactions, withdrawals, conversions, and the unique considerations for employer-sponsored retirement plans. This interpretation is not just academic but is grounded in a profound understanding of financial regulations and reporting practices. If you have any further inquiries or require clarification, feel free to seek guidance from a trusted tax advisor or visit the IRS website for comprehensive resources.