Overwhelmed about tax reporting for Individual Retirement Accounts, Coverdell ESAs, or Health Savings Accounts? Then, this timely webinar is just what you need. If you haven’t started planning for tax reporting season, it’s not too late. Whether you’re new to tax reporting, or need to freshen up your understanding of the regulations, this webinar will help you make sure your credit union is prepared. In this webinar, you will learn basic tax reporting information on these accounts and more. This webinar will cover IRA, ESA, HSA tax forms and due dates. You will learn to identify due dates for tax forms to account owners and the IRS, and to determine which tax forms are needed for each account type. Learn more at www.nafcu.org/ascensus

1. TAX REPORTING RESPONSIBILITIES
Today’s Instructor:
Paul Kern CIS, CIP, CISP
©2012 Ascensus, Inc. www.nafcu.org/aschandouts

2. Learning Objectives
After completing this session, you will be able to
Identify the IRA, HSA, and ESA tax forms required for contributions and
distributions;
Recite the IRA, HSA, and ESA tax form due dates to the account owners and the IRS;
and
Analyze current tax year processes to assure accurate reporting and compliance.
©2012 Ascensus, Inc.
Page 1

3. IRA Tax Reporting Timeline
Distribution Occurred
Regular Contribution
Occurred for Tax Year
Deadline to
report IRA
distributions and Deadline to
FMV/RMD electronically
to IRA account Deadline to
report IRA make regular
owners distributions to IRA Deadline to
the IRS. contributions. report IRA
contributions to
account owners
and IRS.
©2012 Ascensus, Inc.
Page 2

4. 2012 IRS Form 1099-R
Traditional and Roth IRAs
IRA distributions are reported to
the account owner and to the IRS
using IRS Form 1099-R.
©2012 Ascensus, Inc.
Pages 2-3

5. IRA Distributions
Credit unions generally must report all IRA
distributions taken during a year.
• Report must be sent by January 31 to the
account owner and by March 31 to the
IRS.
©2012 Ascensus, Inc. Page 2

6. Required Minimum Distributions
The credit union must provide the
required minimum distribution (RMD)
amount due for the year or it must offer
to calculate the RMD amount for each
Traditional IRA account owner attaining
age 70½ or older. The due date for this
form is also January 31.
©2012 Ascensus, Inc. Page 4

7. Reporting the RMD to the Account owner
Reporting to the Account owner
The credit union is required to notify Traditional account owners age
70½ or older and those approaching age 70½ of the estimated RMD
and deadline for the year.
• This form must be sent by January 31 every year.
©2012 Ascensus, Inc.
Page 4

8. Reporting the RMD to the IRS
Reporting to the IRS
Your credit union is required to
notify the IRS if a Traditional
account owner is required to
receive an RMD for the year
indicated on the IRS Form 5498.
• Box 11 will be marked.
©2012 Ascensus, Inc.
Page 5

9. 2012 IRS Form 5498
Traditional and Roth IRAs
IRA contributions are reported to
the account owner and to the IRS
using IRS Form 5498.
©2012 Ascensus, Inc.
Page 6

10. IRA Contributions
The credit union is generally required to report
all IRA contributions for a given year to the
account owner and to the IRS by May 31 of the
following year.
©2012 Ascensus, Inc. Page 6

11. FMV Reporting
The credit union is required to report each
account's balance as of the close of
business on December 31 to the account
owner by January 31 and to the IRS by May
31. This is balance is known as the fair
market value (FMV).
• There is no formal form for reporting the
FMV.
©2012 Ascensus, Inc. Page 6

12. ESA Tax Reporting Timeline
Distribution Occurred
Regular Contribution
Occurred for Tax Year
Deadline to
report ESA
distributions to
Deadline to
designated
electronically Deadline to
beneficiaries.
report ESA make regular
distributions to ESA Deadline to
the IRS. Deadline to
contributions. report ESA report ESA
contributions contributions to
to designated IRS.
beneficiaries.
©2012 Ascensus, Inc.
Page 7

13. 2012 IRS Form 1099-Q
Coverdell ESAs
ESA distributions are reported
to the ESA designated
beneficiary and to the IRS
using IRS Form 1099-Q.
©2012 Ascensus, Inc.
Pages 7-8

14. ESA Distributions
Credit unions generally must report all ESA
distributions taken during a year.
• Report must be sent by January 31 to the
designated beneficiary and by March 31
to the IRS.
©2012 Ascensus, Inc. Page 7

15. 2012 IRS Form 5498-ESA
Coverdell ESAs
ESA contributions are
reported to the account
owner and to the IRS using
IRS Form 5498-ESA.
©2012 Ascensus, Inc.
Page 9

16. ESA Contributions
The credit union is generally required to report
all ESA contributions for a given year to the ESA
designated beneficiary by April 30 and to the IRS
by May 31 of the following year.
©2012 Ascensus, Inc. Page 9

17. HSA Tax Reporting Timeline
Distribution Occurred
Regular Contribution
Occurred for Tax Year
Deadline to
report HSA
distributions to Deadline to
account owners electronically Deadline to
report HSA make regular
distributions to HSA
the IRS. Deadline to
contributions. report HSA
contributions to
account owners
and IRS.
©2012 Ascensus, Inc.
Page 10

18. HSA Distributions
Credit unions generally must report all HSA
distributions taken during a year.
• Report must be sent by January 31 to the
account owner and by March 31 to the
IRS.
©2012 Ascensus, Inc. Page 10

19. 2012 IRS Form 5498-SA
HSAs
HSA contributions are
reported to the account
owner and to the IRS using
IRS Form 5498-SA.
©2012 Ascensus, Inc.
Page 12

20. 2012 IRS Form 1099-SA
HSAs
HSA distributions are
reported to the account
owner and to the IRS using
IRS Form 1099-SA.
©2012 Ascensus, Inc.
Pages 10-11

21. HSA Contributions
The credit union is generally required to report
all HSA contributions for a given year to the
account owner and to the IRS by May 31 of the
following year.
©2012 Ascensus, Inc. Page 12

22. In Review...
©2012 Ascensus, Inc. Pages 13-14

23. TAX REPORTING RESPONSIBILITIES
Paul Kern CIS, CIP, CISP
paul.kern@ascensus.com
©2012 Ascensus, Inc.