The 5498 is the IRS record of money you put into a Coverdell ESA each year

Form 5498 is a document your Coverdell ESA custodian (usually a bank or investment firm) sends to you and the IRS each year. It reports how much money went into your account during the tax year — not how much you withdrew or how much it grew. The IRS uses this form to track whether contributions stayed within the annual limit of $2,000 per beneficiary.

You receive the 5498 by January 31 of the year after you made the contribution. For example, money you put in during 2024 appears on the 5498 you get in January 2025. The form shows the custodian's name, your account number, the beneficiary's name and Social Security number, and the total contribution amount for that year.

The 5498 is informational — it does not determine your tax bill or reduce your taxes by itself. You use it to verify that your contributions were recorded correctly and to confirm you stayed within the $2,000 annual limit. If you contributed to multiple Coverdell accounts for the same child, you need to add up all contributions across all accounts to make sure the total does not exceed $2,000.

Key Takeaways

  • Form 5498 reports only the money you put into a Coverdell ESA during the tax year, not withdrawals or investment gains.
  • Your custodian mails the 5498 to you by January 31 of the following year, and you should check it against your own records.
  • The annual contribution limit is $2,000 per beneficiary, and the 5498 helps you verify you did not exceed it across all accounts.
  • You do not file the 5498 with your tax return, but you keep it for your records and to support your tax filing if the IRS asks questions.

Where the 5498 comes from and when you get it

The financial institution that holds your Coverdell ESA — whether it is a bank, brokerage, credit union, or other custodian — is responsible for preparing and sending the 5498. They gather the contribution information from your account records and submit a copy to the IRS and a copy to you.

The important date for custodians to send the 5498 is January 31. If you do not receive it by early February, contact your custodian directly. Some custodians offer online access to tax documents, so you may be able to view or read your 5498 through your account portal before the paper copy arrives.

If you made contributions to more than one Coverdell account — for example, one at a bank and one at a brokerage — you will receive a separate 5498 from each custodian. You are responsible for adding them together to confirm your total contributions for the year.

What information appears on the 5498

The 5498 contains several boxes, but the most important one for Coverdell owners is Box 2, which shows the total contribution amount for the tax year. This is the number you use to verify that you stayed within the $2,000 annual limit.

The form also displays the beneficiary's name and Social Security number, your name and address as the account owner, the custodian's name and identification number, and the account number. Box 1 may show a rollover amount if you moved money from one Coverdell to another, which is separate from regular contributions.

Some boxes on the 5498 may be blank if they do not explore to your account. For instance, if you did not do a rollover, that box will be empty. Do not assume a blank box means an error — check your own records and contact your custodian only if the contribution amount in Box 2 does not match what you deposited.

How the 5498 relates to the $2,000 annual contribution limit

The $2,000 limit applies to each beneficiary per calendar year, not per account. If you have one Coverdell for your child and contribute $2,000 to it, you have reached the limit and cannot contribute to another Coverdell for that same child in that year. If you try to contribute more, the excess is subject to a 6% excise tax each year it remains in the account.

The 5498 helps you track this limit because it shows exactly what you contributed. If you own multiple Coverdells for the same child, add up all the 5498 forms you receive for that beneficiary. If the total exceeds $2,000, you have an over-contribution and need to withdraw the excess and any earnings on it to avoid the penalty.

The $2,000 limit resets on January 1 each year. Contributions made in December can be reported on the 5498 for that calendar year, even if you make them after the school year ends.

Keeping the 5498 for your records

You do not attach the 5498 to your tax return when you file. However, you should keep it with your tax records for at least three years. The IRS may ask to see it if they have questions about your Coverdell contributions or if they audit your return.

Store the 5498 in the same place you keep other tax documents — a folder, file box, or digital folder on your computer. If you receive it electronically, read and save a copy rather than relying on your custodian's website, since account portals sometimes delete old documents after a certain period.

The 5498 is also useful for your own records. If you are tracking education savings across multiple accounts or multiple children, the 5498 gives you an official record of what went in each year. This is especially helpful if you need to remember how much you contributed years later.

What to do if the 5498 shows the wrong amount

If the contribution amount on your 5498 does not match what you deposited, contact your custodian right away. Errors can happen — a deposit may have been recorded under the wrong year, or a contribution may have been missed entirely. The custodian can issue a corrected 5498 if needed.

Ask the custodian to send you a corrected form (called a 5498-C) if the original was wrong. They will also send a corrected copy to the IRS. Keep both the original and corrected 5498 in your records so you have a clear trail if questions come up later.

If you discover the error after you have already filed your tax return, you do not need to amend your return just because of a 5498 error — the 5498 is informational and does not directly affect your taxes. However, if the error means you over-contributed, you should address that by withdrawing the excess from the account.

How the 5498 differs from other education savings forms

The 5498 is specific to Coverdell ESAs. If you also have a 529 plan, you will not receive a 5498 for it — 529 plans do not generate IRS forms for contributions. If you have a traditional or Roth IRA, you will receive a different 5498 form (the regular 5498, not the Coverdell version), which reports IRA contributions instead.

The 5498 is also different from the 1099-Q, which reports withdrawals from education accounts. The 5498 shows money going in; the 1099-Q shows money coming out. You may receive both forms in the same year if you both contributed to and withdrew from a Coverdell.

Understanding which form goes with which account type helps you organize your tax records and ensures you are not confusing contribution limits. Each account type has its own rules and its own paperwork.

Frequently Asked Questions

Do I need to report the 5498 on my tax return?

No. The 5498 is informational only and does not go on your return. The IRS receives a copy directly from your custodian. You keep your copy for your records and to verify that contributions were recorded correctly.

What if I contributed to a Coverdell but did not receive a 5498?

Contact your custodian and ask them to send it. If you made a contribution and the custodian has no record, find out what happened — the deposit may have been applied to the wrong account or year. If the custodian confirms they received it but did not report it, ask them to issue a corrected 5498.

Can I deduct Coverdell contributions on my taxes?

No. Coverdell contributions are made with after-tax money and are not deductible. The tax benefit comes later when you withdraw the money to pay for may have access to education expenses — those withdrawals are tax-free. The 5498 does not affect your deductions.

What happens if my 5498 shows I over-contributed?

You need to withdraw the excess contribution and any earnings on it from the account. The earnings portion is taxable and subject to a 10% penalty. Contact your custodian to request a withdrawal and ask for a calculation of how much earnings to remove along with the excess contribution.

Is the 5498 the same for all Coverdell accounts?

The form is the same, but each custodian fills it out based on their records. If you have Coverdells at two different banks, you will get two separate 5498 forms, one from each bank. Add them together to see your total contributions for the year.