Form 5498 is the annual record of money you put into a Coverdell ESA

Form 5498 is a tax document the financial institution holding your Coverdell ESA sends to you and the IRS each year. It reports how much money was deposited into the account during the tax year, the account balance at the end of the year, and whether the account holder rolled money into or out of the account. You receive it by May 31 of the year after the deposits were made.

The form itself does not determine your taxes or reduce what you owe. It is a record for your files and for the IRS to match against your tax return. If you contributed to a Coverdell ESA, you will receive a Form 5498 from the bank, brokerage, or other institution managing the account — even if no one withdrew money that year.

Form 5498 is different from Form 1099-Q, which reports the money that came out of the account. You may receive both forms in the same year if your account had both deposits and withdrawals.

Key Takeaways

  • Form 5498 shows deposits made to a Coverdell ESA during the tax year, not the withdrawals or how the money was spent.
  • The financial institution sends Form 5498 to you and the IRS by May 31 following the tax year in which deposits were made.
  • You need Form 5498 to verify that contributions were recorded correctly and to match against your tax return if you claim a deduction.
  • If you made a contribution after the tax year ended but before the tax filing deadline, it may appear on the following year's Form 5498.
  • Form 5498 is a record document; it does not automatically reduce your taxes or trigger any tax consequence on its own.

What information appears on Form 5498

Form 5498 has several boxes, each reporting a different type of transaction or account detail. Box 1 shows the total amount contributed to the Coverdell ESA during the tax year. Box 2 reports the account balance as of December 31 of that year. Box 3 shows any rollover contributions — money moved from one Coverdell ESA to another. Box 4 reports any distributions (withdrawals) that were rolled over into another Coverdell ESA within 60 days.

The form also includes the account holder's name, Social Security number, and the account number. This information lets you verify that the financial institution has the correct person and account on file. If any of this information is wrong, contact the institution immediately to request a corrected form.

You will also see the name and tax identification number of the financial institution that issued the form. This confirms which bank or brokerage the account is held with, which matters if you have multiple Coverdell ESAs.

When you receive Form 5498 and what to do with it

The financial institution must send Form 5498 to you by May 31 of the year following the tax year in which the contribution was made. For example, contributions made during 2024 appear on the Form 5498 you receive by May 31, 2025. The IRS receives a copy at the same time.

Keep the form with your tax records for at least three years. You do not need to attach it to your tax return, but you should have it available if the IRS ever asks about your Coverdell ESA contributions. If you are claiming a deduction for contributions on your tax return, the Form 5498 serves as your proof that the contribution was actually made.

If you do not receive Form 5498 by early June, contact the financial institution. Provide your account number and ask them to send a replacement or confirm that one was mailed. If the form never arrives, you can still file your tax return, but keep a record of when you requested the form and what the institution told you.

How Form 5498 connects to your tax return

Form 5498 does not automatically reduce your taxes. Instead, it documents that a contribution was made so you can report it correctly on your tax return. If you contributed to a Coverdell ESA and you are may be able to access to deduct that contribution, you report the deduction on your tax return — not on Form 5498 itself.

The IRS uses Form 5498 to verify that the contributions you reported on your return actually occurred. If you claim a $2,000 contribution deduction but Form 5498 shows only $1,500 was deposited, the IRS will notice the mismatch. This is why accuracy matters: the financial institution's record and your tax return should match.

If you made a contribution after the tax year ended but before the tax filing deadline (usually April 15), that contribution counts for the prior tax year but appears on the Form 5498 for the year in which it was actually deposited. For example, a contribution made in March 2025 for the 2024 tax year will show on the 2025 Form 5498, not the 2024 one. You still report it on your 2024 tax return, so you need to track this yourself.

Form 5498 versus Form 1099-Q: what is the difference

Form 5498 reports money going into the account. Form 1099-Q reports money coming out of the account. You may receive both in the same year if your Coverdell ESA had both deposits and withdrawals.

Form 5498 is sent by the financial institution holding the account. Form 1099-Q is also sent by that institution and reports distributions (withdrawals) made during the tax year. If a withdrawal was used to pay may have access to education expenses, it may not be taxable — but Form 1099-Q itself does not make that information. You have to track the education expenses and report them on your tax return to show that the withdrawal was tax-free.

In summary: Form 5498 is about contributions, Form 1099-Q is about withdrawals. Both are records you need to keep and match against your tax return.

What to do if Form 5498 has an error

If Form 5498 shows the wrong contribution amount, the wrong account balance, or incorrect personal information, contact the financial institution immediately. Explain what is wrong and ask them to issue a corrected Form 5498, which will be marked as a correction on the copy sent to the IRS.

Do not file your tax return until the form is corrected if the error affects the amount you are reporting as a contribution. If you file with one number and Form 5498 shows a different number, the IRS will send you a notice asking you to explain the difference. It is faster to get the correction done first.

If the institution is slow to respond, follow up in writing (email is fine) and keep a copy of your message. Document the date you first reported the error and what you were told. This record protects you if the IRS later questions the discrepancy.

Frequently Asked Questions

Do I have to attach Form 5498 to my tax return?

No. Form 5498 stays in your records. You report the contribution amount on your tax return based on what you actually deposited, and Form 5498 serves as your proof if the IRS asks. The IRS receives its own copy directly from the financial institution.

What if I made a contribution but did not receive Form 5498?

Contact the financial institution and ask them to send a replacement. If they confirm the contribution was recorded in their system, you can still report it on your tax return — Form 5498 is a record, not a requirement to claim the contribution. Keep documentation of your request and their response.

Can I use Form 5498 to prove I paid for education expenses?

No. Form 5498 only shows that money went into the account. To prove that a withdrawal was used for may have access to education expenses, you need receipts, tuition bills, or other documentation of the actual expenses. Form 1099-Q reports the withdrawal amount, but you provide the expense proof separately.

If I have multiple Coverdell ESAs, do I get multiple Form 5498s?

Yes. Each financial institution sends a separate Form 5498 for each account they hold. If you have accounts at two different banks, you will receive two forms. Add up all contributions across all accounts to determine your total annual contribution for tax purposes.

What year does a contribution appear on Form 5498 if I make it after December 31?

A contribution made in January through April (before the tax filing deadline) can count for the prior tax year, but it will appear on the Form 5498 for the year it was actually deposited. You report it on the prior year's tax return and keep the Form 5498 from the following year as proof.