Instructions For Form 5498-Esa - Coverdell Esa Contribution Information - 2007 Page 3
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Department of the Treasury
Internal Revenue Service
Instructions for Form
5498-ESA
Coverdell ESA to another Coverdell ESA. A rollover can be
Section references are to the Internal Revenue Code unless
otherwise noted.
made from certain U.S. Savings Bonds or another Coverdell
ESA. Any amount distributed from a Coverdell ESA may be
Reminder
rolled over to another Coverdell ESA and is not taxable if it
is for the benefit of the same beneficiary or certain family
In addition to these specific instructions, you should also use
members (see below).
the 2007 General Instructions for Forms 1099, 1098, 5498,
and W-2G. Those general instructions include information
Total distribution, no contributions. Generally, if a total
about:
distribution was made from an account during the year and
•
Backup withholding
no contributions including rollovers were made for that year,
•
Electronic reporting requirements
you do not need to file Form 5498-ESA.
•
Penalties
Distributions. Report distributions from any Coverdell ESA
•
Who must file (nominee/middleman)
on Form 1099-Q, Payments From Qualified Education
•
When and where to file
Programs (Under Sections 529 and 530). Any change in the
•
Taxpayer identification numbers
beneficiary of the Coverdell ESA is not treated as a
•
Statements to recipients
distribution if the new beneficiary is a family member (see
•
Corrected and void returns
below) of the prior beneficiary and has not reached the age
•
Other general topics
of 30 (except for a beneficiary with special needs).
You can get the general instructions from the IRS website
Family member. A family member of the designated
at or by calling 1-800-TAX-FORM
beneficiary includes his or her spouse, children and their
(1-800-829-3676).
descendants, stepchildren and their descendants, siblings
and their children, parents and grandparents, stepparents,
and their spouses. It also includes the first cousins of the
Specific Instructions for Form
designated beneficiary.
Statements to participants. If you are required to file Form
5498-ESA
5498-ESA, you must provide a statement to the beneficiary
File Form 5498-ESA, Coverdell ESA Contribution
(participant) by April 30, 2008.
Information, with the IRS by June 2, 2008, for each person
For more information about the requirement to furnish
for whom you maintained any Coverdell education savings
statements to participants, see part M in the 2007 General
account (ESA) during 2007.
Instructions for Forms 1099, 1098, 5498, and W-2G.
A Coverdell education savings account is a trust or
Account number. The account number is required if you
custodial account created or organized in the United States
have multiple accounts for a recipient for whom you are
exclusively for the purpose of paying the qualified education
filing more than one Form 5498-ESA. Additionally, the IRS
expenses of an individual who is the designated beneficiary
encourages you to designate an account number for all
of the trust. The account must be designated as a Coverdell
Forms 5498-ESA that you file. See part L in the 2007
ESA at the time it is created or organized in order to be
General Instructions for Forms 1099, 1098, 5498, and
treated as a Coverdell ESA for tax purposes. The governing
W-2G.
instrument creating the trust must meet the requirements of
section 530(b)(1).
Box 1. Contributions (Other Than Amounts
Contributions. You must report contributions, including
in Box 2)
rollover contributions, to any Coverdell ESA on Form
Enter contributions to a Coverdell ESA made in 2007 and
5498-ESA. See the instructions under Boxes 1 and 2. If no
through April 15, 2008, designated for 2007.
reportable contributions were made for 2007, no return is
Do not include rollovers in box 1. Report rollovers in
required.
box 2.
For contributions made between January 1, 2008, and
April 15, 2008, trustees and issuers should obtain the
Box 2. Rollover Contributions
participant’s designation for the year that the contributions
Enter any rollover contributions (including trustee-to-trustee
are made.
transfers) to this Coverdell ESA received by you during 2007
Transfers. Report on Form 5498-ESA all rollovers
(see Transfers above).
including a direct trustee-to-trustee transfer from one
Cat. No. 34006Q
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