Form 5498 is the IRS document that reports your Coverdell ESA contributions and account value to the government each year
Form 5498 is an informational return — not a tax form you file yourself. The financial institution that holds your Coverdell ESA sends it to you and the IRS every year by May 31. It shows how much money went into your account during the tax year and what your account balance was on December 31. The IRS uses this form to track whether you are staying within contribution limits and to verify that your account is being used for may have access to education expenses.
You will receive Form 5498 even if you made no contributions that year, as long as your account had a balance. The form itself is not a tax document you need to attach to your return — it is purely informational. However, you do need the information on it to report your contributions correctly on your own tax return, and you should keep it with your tax records.
Key Takeaways
- Form 5498 comes from your Coverdell ESA custodian (usually a bank or brokerage) by May 31 each year and shows contributions and year-end balance.
- The form reports to the IRS that you contributed to a Coverdell ESA, which helps the agency verify you did not exceed the annual $2,000 contribution limit.
- You do not file Form 5498 with your tax return, but you use the contribution information from it to report on your own return if you claim an education credit.
- If you withdraw money from your Coverdell ESA, the custodian reports that separately on Form 1099-Q, not on Form 5498.
What information appears on Form 5498
Form 5498 has several boxes, but the ones that matter most are the contribution amount and the account balance. Box 2 shows contributions made for the current tax year. Box 5 shows the fair market value of your account on December 31. The form also identifies the beneficiary of the account — the student for whom the money is being saved.
Some boxes on Form 5498 may be blank because they apply to other types of accounts (like IRAs). For a Coverdell ESA, you are mainly looking at the contribution and balance information. If you made a rollover from one Coverdell ESA to another, that appears in a separate box.
When you receive Form 5498 and what to do with it
Your Coverdell ESA custodian must send Form 5498 to you by May 31 of the year following the tax year being reported. For example, contributions made in 2024 appear on the Form 5498 you receive by May 31, 2025. The custodian also sends a copy to the IRS at the same time.
Keep Form 5498 with your tax records for at least three years. You do not need to file it with your tax return, but if the IRS questions your contributions or your account balance, you will need it to prove what you reported. If you are claiming an education credit (like the American Opportunity Tax Credit or Lifetime Learning Credit) and you used Coverdell ESA funds to pay for may have access to expenses, the information on Form 5498 helps document that.
How Form 5498 connects to your tax return
Form 5498 itself does not go on your tax return. However, the contribution amount shown on it should match what you report on your return if you are claiming an education credit. When you claim a credit, you report the may have access to education expenses you paid, and the IRS cross-checks that against the contributions shown on Form 5498 and any withdrawals shown on Form 1099-Q.
If you contributed to a Coverdell ESA but did not withdraw money that year, Form 5498 confirms the contribution was made. If you withdrew money to pay for may have access to education expenses, you will also receive Form 1099-Q from the custodian, which reports the withdrawal amount. Together, these two forms create a record of money in and money out.
What happens if Form 5498 shows an error
If the contribution amount or account balance on Form 5498 is wrong, contact your custodian immediately. They can issue a corrected form (marked as a correction) and send it to you and the IRS. Do this as soon as you notice the error, because the IRS receives the original form and will have the incorrect information on file.
If you discover the error after you have filed your tax return, you may need to file an amended return (Form 1040-X) if the error affects your reported contributions or education credits. Keep documentation of the correction from your custodian so you can show the IRS what happened if they question your return.
Form 5498 versus Form 1099-Q
These two forms work together but report different things. Form 5498 reports money going into your Coverdell ESA (contributions). Form 1099-Q reports money coming out (withdrawals and distributions). You may receive both forms in the same year if you both contributed and withdrew money.
Form 1099-Q shows the total amount withdrawn and how much of that withdrawal was earnings versus contributions. This matters for taxes because withdrawals of earnings used for non-may have access to expenses may be subject to income tax and a 10 percent penalty. Form 5498 does not address withdrawals at all — it only tracks what went in and what the account was worth at year-end.
Frequently Asked Questions
Do I have to report Form 5498 on my tax return?
No. Form 5498 is informational only. You do not attach it to your return or report it as a line item. However, if you are claiming an education credit, you report the may have access to education expenses you paid, and the IRS uses Form 5498 and Form 1099-Q to verify your contributions and withdrawals match your claimed expenses.
What if I did not receive Form 5498?
Contact your Coverdell ESA custodian. They are required to send it by May 31. If it is already past that date and you have not received it, ask them to resend it or issue a duplicate. If your custodian cannot locate a record of your account, you may need to contact them to confirm the account still exists and is in your name.
Can I contribute to a Coverdell ESA after I receive Form 5498?
Form 5498 reports contributions for a specific tax year (for example, 2024). You can make contributions for that year until the tax filing deadline (usually April 15 of the following year), even though the form was issued in May. If you contribute after Form 5498 is issued, ask your custodian to send you a corrected form or confirm in writing that the additional contribution was recorded.
What if my Coverdell ESA had no activity that year?
You will still receive Form 5498 if your account had a balance on December 31, even if you made no contributions and took no withdrawals that year. The form shows the year-end balance in Box 5. This helps the IRS track active accounts and verify they are being maintained properly.