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Understanding Your Fidelity 2015 Form 5498 IRA Contribution Information Statement

If you had a Fidelity IRA in 2015, this guide may highlight tax reporting information related to your account.

Your IRA summary statement has three parts:

  • Form 5498
  • IRA Portfolio
  • IRA Beneficiary Summary Statement

Form 5498 summarizes IRA contributions, recharacterizations, conversions, and reconversions, and is the only information we report to the IRS.

The IRA Portfolio section lists your holdings and their fair market value while your IRA Beneficiary Summary Statement lists your IRA beneficiaries.

Form 5498

An IRA can be a powerful way to save for retirement.

No matter what the market is doing, your IRA can still be a good way to save for tomorrow. For tax year 2015, you can contribute up to $5,500 to your IRA, and up to $6,500 if you were 50 or over as of December 31, 2015. Maximizing your contributions and starting early could help you save thousands more for your retirement.

Nonworking spouses can contribute, too.

Even if your spouse has little or no earned income, he or she may still be able to contribute to a spousal IRA—either a Traditional or a Roth IRA. To contribute, you must file a joint federal income tax return and have taxable compensation equal to or greater than the total amount contributed by both spouses. As with other IRAs, spousal IRAs offer benefits, including the higher contribution limits, deductible contributions to Traditional IRAs for qualified investors, the potential for tax-deferred growth, and federal tax-free withdrawals from Roth IRAs (provided the criteria are met).

Commit to regular investing.

Automatic investing directs money from your bank account into your IRA on a monthly or quarterly basis. You can easily add or update your automatic investing contribution instructions by calling 800-343-3589.

Important withholding information concerning retirement account distributions

Federal tax withholding

IRS regulations require us to withhold federal income tax at a rate of 10% from your total IRA distribution (excluding Roth IRA distributions). You may elect not to have federal withholding apply (provided you have supplied Fidelity with a U.S. address), or you may elect to increase the rate of withholding. Federal income tax will not be withheld from distributions from a Roth IRA unless you elect to have such tax withheld or are otherwise subject to withholding because you are a nonresident alien. Your election will remain in effect on checkwriting or periodic distributions taken under a systematic withdrawal plan from your IRA until revoked by you. You can change this election for future distributions at any time by sending Fidelity a written request or calling a retirement representative at 800-544-4774.

State tax withholding

If federal income tax is withheld from your distribution, state income taxes may also be withheld. Your state of residence will determine your state income tax withholding requirements, if any. Please refer to the list below. Your state of residence is determined by your legal address of record provided for your IRA. The information provided is general in nature and should not be considered legal or tax advice. Please contact your investment representative, tax advisor, or state taxing authority for assistance.

For residents of AK, FL, HI, MS, NH, NV, SD, TN, TX, WA, and WY: State income tax withholding is not available on your IRA distributions.

For residents of AR, IA, KS, MA, ME, OK, and VT: If federal income tax is withheld, state income tax of at least your state's minimum requirements must be withheld in addition to federal income tax withholding at the time of your distribution. If you elect out of federal income tax withholding, state income tax will not be withheld unless you indicate otherwise.

For residents of CA, DE, NC, and OR: If federal income tax is withheld, state income tax of at least your state's minimum requirements must be withheld in addition to federal income tax withholding at the time of your distribution unless you elect not to have state income taxes withheld.

For residents of DC: If you take a distribution of your entire account balance and do not directly roll that amount over to another eligible retirement account, the DC requires that a minimum amount be withheld from the taxable portion of the distribution, whether or not federal income tax is withheld.

For residents of MI: State income tax applies regardless of whether or not federal income tax withholding is applied to your distribution. Tax withholding is not required if you meet certain MI requirements governing pension and retirement benefits. Please reference Form MI W-4P for additional information about calculating the amount to withhold from your distributions.

For residents of MS: State income tax of at least your state's minimum requirements must be withheld regardless of whether or not federal income tax is withheld unless you elect not to have state income taxes withheld.

For residents of SC: You must provide a valid Social Security number, individual tax identification number, or tax identification number for a nonresident alien; if not, SC requires that 7% tax be withheld from the distribution.

For residents of all other states and residents of DC not taking a full distribution: You are not subject to mandatory state income tax withholding; however, you may elect voluntary state income tax withholding in a percentage. If you elect to have state income taxes withheld and your state provides a minimum amount or percentage for withholding, you must elect a percentage that is not less than your state's minimum withholding requirements. If the percentage you elect for withholding is less than your state's minimum withholding requirements, your state's minimum amount or percentage will be withheld. Contact a Fidelity representative at 800-343-3548 for more information, or contact your state taxing authority for assistance.

Armed forces tax benefits

If you are serving in, or serving in support of, the U.S. Armed Forces in a designated combat zone or hazardous duty area, you may be eligible for an extension of your IRA contribution deadlines. Visit the IRS online at irs.gov or call 800-829-1040 for more information.

Take control of your old 401(k) — we are here to help

We know what it takes to help get an old 401(k) to work toward your goals. As the #1 IRA provider,1 we can help you put together a plan so your old 401(k) is working as hard as it can for you. Put our experience to work for you.

Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

Guidance based on your needs

We'll review your situation and help you create a plan for your retirement savings. Call 800-343-3589 to schedule a free portfolio review.

A wide range of choices

Expand your investing options with a Fidelity Rollover IRA. We offer access to a wide range of products and services to help meet your different investment needs including:

  • One-on-one guidance2
  • Investments ranging from over 5,000 mutual funds from Fidelity and other companies, stocks, bonds, FIDC-insured CDs, ETFs, and annuities
  • Great value in Fidelity IRAs with no account opening or annual maintenance fees* and online U.S. equity trades as low as $7.95 per trade all the time3
  • Asset protection through certain Fidelity IRAs that offer an interest bearing cash position, offering the benefit of FDIC insurance eligibility through a Program Bank4

*There is no cost to open and no annual fee for Fidelity's Traditional, Roth, SEP, and Rollover IRAs. A $50 account close-out fee may apply. Fund investments held in your account may be subject to management, low‐balance and short‐term trading fees, as described in the offering materials. For all securities, see the Fidelity commission schedule (PDF) for trading commission and transaction fee details.

Free help choosing investments

We can help you make choices that can get you on the path toward your retirement goals. Consolidating your assets into a Fidelity Rollover IRA may make it easier to track investment performance, diversify your total portfolio, and maintain your asset allocation strategy.

Whether you’re just getting started, already retired, or somewhere in between, Fidelity is here to help. Our rollover specialists can get you started today and help you turn your old 401(k) into one, easy-to-manage Fidelity Rollover IRA. Call 800-343- 3589 or visit any one of our local Investor Centers.

Planning beyond retirement

Fidelity can not only help you with your retirement goals, but also help you plan for the transition into retirement and the years you'll spend living in retirement. We can help you create your retirement income plan and discuss factors and considerations for creating your strategy for income during retirement. Learn about "What to do when..." based on where you are with your retirement planning goals.

Ensure your heirs inherit your IRA by keeping your beneficiaries up to date

Have you checked your beneficiary designation for your IRA recently? The IRA Beneficiary Summary section, part of your Form 5498 IRA Contribution Information Statement, provides a detailed list of the beneficiaries on file for your Fidelity IRA as of December 31, 2014.

You should review your beneficiary designations based on any important change in your family or financial status, such as a birth, death, marriage, divorce, or inheritance.

IRA assets generally pass to beneficiaries outside the instructions of a will. Your designated beneficiaries will receive your IRA assets after your death, so it is important to keep your beneficiary information up to date, or your heirs may be subject to a less favorable tax-treatment.

You can update your beneficiary information (login required) online.

1.

Cerulli Associates’ The Cerulli Edge®Retirement Edition, Q2 2015, based on an industry survey of firms reporting total IRA assets administered for Q1 2015.

2.

Guidance provided is educational.

3.

$7.95 commission applies to online U.S. equity trades in a Fidelity account with a minimum opening balance of $2,500 for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other conditions may apply. See Fidelity.com/commissions for details.

4. The cash balance in the FDIC-insured Deposit Sweep is swept to an FDIC-insured interest-bearing account at a Program Bank. The deposit at the Program Bank is not covered by SIPC. The deposit is eligible for FDIC insurance subject to FDIC insurance coverage limits. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. The Program Bank will be assigned to your account during the account opening process. See the current list of eligible Program Banks. For more information, please see the FDIC Insured Deposit Sweep Program (PDF) disclosure document. For more information about FDIC Insurance coverage, please visit the FDIC website at www.FDIC.gov or call 877-ASK-FDIC. Customers are responsible for monitoring their total assets at the Program Bank.

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IRA contributions

Reports 2015 contributions to Traditional IRAs or Rollover IRAs, including employee annual contributions (other than salary-deferral contributions) to SEP IRAs, through December 31, 2015. If you make any IRA contributions for 2015 between January 1 and April 18, 2016, Fidelity will mail an updated Form 5498 to you by May 31, 2016. The amount shown is the gross contribution, including any excess contribution(s), even if withdrawn.

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Rollover contributions

Reports rollover contributions made in 2015 to a Traditional, Roth, SEP IRA, or SIMPLE IRA. This amount includes direct rollovers from employer-sponsored plans, as well as 60-day rollover contributions. Line 2 also reports qualified rollover contributions to Roth IRAs, which include military death gratuities, Service Member Group Life Insurance payments, qualified settlement income and airline payments. Line 2 does not show direct custodian-to-custodian transfers, which are not reported to the IRS.

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Roth IRA conversion amount

Reports amounts converted to a Roth IRA from a Traditional, Rollover, SEP IRA, or SIMPLE IRA in 2015. Line 3 also reports amounts reconverted back to a Roth IRA following a recharacterization to a Traditional, Rollover, or SEP IRA. It does not include rollovers from one Roth IRA to another, which are reported on Line 2.

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Recharacterized contributions

Reports contributions (and earnings) recharacterized from one type of IRA to another.

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Fair market value of account

Reports the fair market value (FMV) of your IRA as of December 31, 2015.

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IRA type

Identifies the type of IRA reported.

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SEP contributions

Reports all SEP contributions made by an employer or self-employed individual in 2015 (but which may have been made for 2014 or 2015, but not including contributions made in 2016 for 2015).

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SIMPLE contributions

Reports SIMPLE contributions made in 2015, including your elective deferral contributions and contributions made by your employer.

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Roth IRA contributions

Reports contributions made in 2015 to a Roth IRA for 2015. If you make any IRA contributions for 2015 between January 1 and April 18, 2016, Fidelity will mail an updated Form 5498 to you by May 31, 2016. It does not show amounts converted to a Roth IRA, which are reported on Line 3.

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Required minimum distribution for 2016

If the box is checked, you must take a Required Minimum Distribution (RMD) in 2016. Fidelity refers to Required Minimum Distributions as Minimum Required Distributions (MRD). An MRD may be required even if the box is not checked. If you do not take the MRD for 2016, you are subject to a 50% excise tax on the amount not distributed. See Publication 590 (PDF) for details.

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RMD date

If you will be of minimum required distribution (MRD) age in 2016, this reports the date by which you must take your next MRD.

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Postponed contributions

Reports amount of any postponed contributions made in 2015 for a prior year.

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Year

Reports the year for which the amount on line 13a is being made.

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Code (13c)

The code on this line tells the IRS the reason you are allowed to make the postponed contribution. The allowed codes for participants who served in combat zones are EO13239 for Afghanistan and associated direct support areas, EO12744 for Arabian peninsula areas, and EO13119 for the Yugoslavia operations areas.

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Repayments

This line will report any repayments of distributions made under the qualified reservist or federally designated disaster distribution rules.

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Code (14b)

This code identifies what the reason is for the line 14a amount being repaid. The options for the codes are QR for qualified reservist and DD for disaster recovery.

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FMV of certain specified assets

This line will report the Fair Market Value (FMV) of the investments in the IRA that are specified in the categories identified in Line 15b.

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Codes (15b)

This code identifies the types of investments held in your account for which the Fair Market Value (FMV) is required to be reported in Line 15a.

  1. Stock or other ownership interest in a corporation that is not readily trade-able on an established securities market.
  2. Short or long-term debt obligation that is not traded on an established securities market.
  3. Ownership interest in a limited liability company or similar entity (unless the interest is traded on an established securities market).
  4. Real estate.
  5. Ownership interest in a partnership, trust, or similar entity (unless the interest is traded on an established securities market).
  6. Option contract or similar product that is not offered for trade on an established option exchange.
  7. Other asset that does not have a readily available FMV.
  8. More than two types of assets (listed in A through G) are held in this IRA.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
Turbo Tax and Fidelity Investments are independent entities and are not legally affiliated.
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