Instructions For Form 5498-Esa - 2016
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1
22016
Department of the Treasury
Internal Revenue Service
Instructions for Form
5498-ESA
Coverdell ESA Contribution Information
Section references are to the Internal Revenue Code
instrument creating the trust must meet the requirements
unless otherwise noted.
of section 530(b)(1).
Future Developments
Contributions. You must report contributions, including
rollover contributions, to any Coverdell ESA on Form
For the latest information about developments related to
5498-ESA. See the instructions under box 1 and box 2. If
Form 5498-ESA and its instructions, such as legislation
no reportable contributions were made for 2016, no return
enacted after they were published, go to
is required.
form5498esa.
For contributions made between January 1, 2017, and
What's New
April 18, 2017, trustees and issuers should obtain the
participant's designation of the year for which the
Due to the very low volume of paper Forms 5498-ESA
contributions are made.
received and processed by the IRS each year, this form
Rollovers and transfers. Report on Form 5498-ESA
has been converted to an online fillable format. You may
all rollovers, including a direct trustee-to-trustee transfer
fill out the form, found online at form5498esa,
from one Coverdell ESA to another Coverdell ESA. A
and send Copy B to the recipient. For filing with the IRS,
rollover can be made from certain U.S. Savings Bonds or
follow your usual procedures for filing electronically if you
another Coverdell ESA. The contribution of a military
are filing 250 or more forms. If you are filing this form on
death gratuity to a Coverdell ESA is a rollover
paper due to a low volume of recipients, for this form
contribution. Any amount distributed from a Coverdell
only, you may send in the black and white Copy A with a
ESA may be rolled over to another Coverdell ESA and is
Form 1096 that you print from the IRS website.
not taxable if it is for the benefit of the same beneficiary or
Reminder
a member of the beneficiary's family.
In addition to these specific instructions, you should also
Family member. Family members of the designated
use the 2016 General Instructions for Certain Information
beneficiary include the beneficiary's spouse. Also
Returns. Those general instructions include information
included are the beneficiary's children, stepchildren, foster
about the following topics.
children, and their descendants; siblings and their
children; parents, their siblings, and ancestors;
Who must file (nominee/middleman).
stepparents; in-laws; the spouse of any of the foregoing;
When and where to file.
and any first cousin of the designated beneficiary.
Electronic reporting requirements.
Corrected and void returns.
Total distribution, no contributions. Generally, if a
Statements to recipients.
total distribution was made from an account during the
Taxpayer identification numbers.
year and no contributions (including rollovers) were made
Backup withholding.
for that year, you do not need to file Form 5498-ESA.
Penalties.
Distributions. Report distributions from any Coverdell
Other general topics.
ESA on Form 1099-Q, Payments From Qualified
Education Programs (Under Sections 529 and 530). Any
You can get the general instructions at
change in the beneficiary of the Coverdell ESA is not
form5498esa.
treated as a distribution if the new beneficiary is a family
member (see above) of the prior beneficiary and has not
Specific Instructions
reached the age of 30 (except for a beneficiary with
File Form 5498-ESA, Coverdell ESA Contribution
special needs).
Information, with the IRS by May 31, 2017, for each
Statements to participants. If you are required to file
person for whom you maintained any Coverdell education
Form 5498-ESA, you must furnish a statement to the
savings account (ESA) during 2016.
beneficiary (participant) by May 1, 2017.
For more information about the requirement to furnish
A Coverdell education savings account is a trust or
statements to participants, see part M in the 2016 General
custodial account created or organized in the United
Instructions for Certain Information Returns.
States exclusively for the purpose of paying the qualified
education expenses of an individual who is the
Truncating beneficiary’s identification number on
designated beneficiary of the trust or custodial account.
payee statements. Pursuant to Treasury Regulations
The account must be designated as a Coverdell ESA at
301.6109-4, all filers of this form may truncate a
the time it is created or organized in order to be treated as
beneficiary’s identification number (social security number
a Coverdell ESA for tax purposes. The governing
(SSN), individual taxpayer identification number (ITIN),
Oct 27, 2015
Cat. No. 34006Q
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