One of the methods used by the Internal Revenue Service (IRS) to track IRA activity is through Form 5498. Form 5498 is used by IRA custodians to communicate IRA contribution activity to the IRS. IRA custodians are required to mail Form 5498 by May 31, 2024, for contributions made for the 2023 calendar year, or later if they file for extensions.

IRAs are an important, but often overlooked, part of your overall tax planning. As the deadline for filing 2023 tax returns approaches, it is a good time to incorporate your IRA plan strategies with your overall tax plan. You are probably now busy gathering the necessary information to file your 2023 federal income tax returns. You will want to be sure that as you do so, you keep some important IRA rules and strategies in mind.

Did you make a Roth IRA contribution for 2023? If you have not, you still have some time. The deadline for making a prior year contribution is the tax-filing deadline, not including any extensions you might have. For 2023, that deadline is April 15, 2024. If you have made a Roth IRA contribution for 2023, or are still planning to make one, you may be wondering where to report Roth contributions on your federal income tax return. The answer may surprise you.

Overall, 2023 was a good year for investors. Interest rates continued to rise, but at a much slower and less consistent pace than in 2022 and recession worries continued to make headlines, however investors still experienced strong positive returns in the major indexes in 2023. Notably, the year ended on a high note in December as the Federal Reserve decided for the third straight time not to raise interest rates. They also indicated that interest rate cuts were forecasted to start in 2024. Equity markets responded favorably, and investors are seeing the light at the end of the pandemic-induced tunnel. While equities are looking brighter, this year brings a presidential election which could bring major changes. 2024 could prove to be a very interesting year.