Fidelity Institutional Important Notice: 23-350
Starting with tax year 2023, National Financial Services (NFS) will no longer generate IRS Form 5498s for Premiere Select IRA1 customers who do not meet any of the following conditions:
- Will be 72 or older as of December 31, 2023, and has a Traditional, Rollover, SEP, or SIMPLE IRA
- Made a current-year contribution during calendar year 2023 or a prior-year contribution between January 1 – April 15, 2024
- Completed a rollover, recharacterization, or Roth conversion during the calendar year Account is an Inherited IRA-BDA or Inherited Roth BDA
- Account holds “hard to value” assets, such as:
- Alternative investment promissory notes
- Assets with no pricing
- American Depository Receipts (ADRs)
- Pink Sheets
The suppression of these forms is part of an ongoing effort by NFS to reduce our reliance on paper and become a digital leader in the industry.
Form 5498 is not required for the customer to file their tax return. In lieu of receiving the 5498, the customer can refer to their December account statement for balance information, including their account’s year-end value. This will not impact NFS’s reporting requirements to the Internal Revenue Service (IRS).
Please note: Private Label IRAs, where the correspondent is the IRA custodian, will not be affected by this suppression effort. Private Label IRA owners will continue receiving Form 5498s. NFS will consider including these accounts as a possible future enhancement.
Customer Notification
The December 2023 statement will include the following message informing customers of this change. Please note, this message will occupy one of the four available marketing message spots:
Note, the December 31, 2023, value of this account reflected on this statement will be reported to the IRS as part of year-end tax-reporting. You will receive IRS Form 5498 in January 2023 if you made any contributions, recharacterizations or conversions, or if you held Hard-to-Value assets during 2023. If you make contributions for 2023 in 2024, you will be provided a Form 5498 reflecting those contributions in May 2024. If you have a periodic distribution plan or check writing on your IRA account, please access www.mybrokerageinfo.com for updated tax withholding information. It is important to review the beneficiaries listed on your Premiere Select IRA account and update if needed.
Related Links & Reference Materials
TC137908(1123)1