Form 5498 reports your Coverdell ESA contributions to the IRS

Form 5498: Coverdell ESA Contribution Information is a tax document that your Coverdell ESA custodian (usually a bank or investment firm) sends to you and the IRS each year. It shows how much money was added to your account during the tax year and the total value of the account on December 31. You do not need to attach it to your tax return, but you should keep it with your tax records.

The form arrives by May 31 of the year following the contribution year. For example, contributions made in 2024 appear on the Form 5498 you receive by May 31, 2025. The IRS uses this form to track whether contributions stay within the annual limit of $2,500 per beneficiary.

Form 5498 is different from a 1099 form. A 1099 reports income (like interest or investment gains). Form 5498 reports contributions you put in, which are not income to you — they are money you already earned and chose to set aside for education.

Key Takeaways

  • Form 5498 shows contributions made to a Coverdell ESA and the account balance on December 31, sent by May 31 of the following year.
  • The form is informational for your records and does not need to be filed with your tax return.
  • Your custodian sends one copy to you and one to the IRS to verify contributions stay under the $2,500 annual limit per beneficiary.
  • If you made contributions to multiple Coverdell ESAs for the same beneficiary, you must track the total across all accounts to stay within the limit.

What information appears on Form 5498

The form lists the account owner's name and Social Security number, the beneficiary's name and Social Security number, and the custodian's name and address. The main data fields show the total contributions made during the tax year and the fair market value of the account on December 31.

Box 1 displays contributions made to the Coverdell ESA during the tax year. Box 2 shows the account value on December 31. If you made a rollover from one Coverdell ESA to another, that amount appears in Box 3. Box 4 notes whether the beneficiary was a full-time student during any month of the year, which can affect whether you can withdraw money penalty-free.

You may also see a notation if the account is a Coverdell ESA for a non-student beneficiary — a less common account type for beneficiaries who are not in school. The form will indicate this in the remarks section.

When you receive Form 5498 and what to do with it

Your custodian mails Form 5498 by May 31 each year. If you do not receive it by early June, contact your custodian directly — do not wait for the IRS to send a copy. The custodian has your mailing address on file and is responsible for sending it.

Keep the form with your tax records for at least three years. You do not file it with your return, but if the IRS ever questions your contributions or account activity, you will need to show this document to prove what you reported. If you made contributions to more than one Coverdell ESA for the same beneficiary in the same year, gather all the Form 5498s and add up the contributions in Box 1 across all forms to confirm you did not exceed $2,500.

If you notice an error on the form — for example, the wrong contribution amount or an incorrect beneficiary name — contact your custodian when ready. They can issue a corrected Form 5498 (marked as a correction) and send it to both you and the IRS.

How Form 5498 connects to your tax return

Form 5498 itself does not change your taxes directly. However, the information on it supports other tax decisions you may make. If you withdrew money from the Coverdell ESA to pay for may have access to education expenses, you report that on your tax return using Form 1040 and Schedule A or other schedules depending on your situation. Form 5498 proves how much was in the account and when contributions were made, which helps you calculate whether a withdrawal is taxable.

If the beneficiary received a scholarship or grant, you may need to reduce the amount of may have access to education expenses you can cover with Coverdell ESA withdrawals. Form 5498 shows the account balance, which is the pool of money available to withdraw. The form does not do this calculation for you — you do it when you file your return or work with a tax preparer.

The IRS matches the contribution information on Form 5498 against what you report on your return. If you claim a contribution that does not appear on Form 5498, or if Form 5498 shows a contribution you did not report, the IRS may send you a notice asking for clarification.

Form 5498 for multiple Coverdell ESAs

If you have opened Coverdell ESAs at different custodians for the same beneficiary, each custodian sends a separate Form 5498. You will receive multiple forms in the mail. This is normal and expected.

The risk is exceeding the $2,500 annual contribution limit across all accounts. For example, if you contribute $1,500 to a Coverdell ESA at Bank A and $1,200 to a Coverdell ESA at Bank C, you have contributed $2,700 total — $200 over the limit. Each custodian only knows about their own account, so neither Form 5498 will flag this. You must track it yourself by adding up Box 1 on all the forms you receive for that beneficiary.

If you discover you over-contributed, you can request that one custodian return the excess contribution plus any earnings on it. The earnings are taxable to the beneficiary, and there may be a 10% penalty on the earnings if the beneficiary is not a full-time student. Correcting an over-contribution is easier if you catch it before the tax year ends, but you can still fix it after by requesting a return of excess contributions.

Frequently Asked Questions

Do I have to file Form 5498 with my tax return?

No. Form 5498 is an informational document that you keep for your records. The IRS receives a copy directly from your custodian. You do not attach it to your Form 1040 or any other return.

What if I did not receive Form 5498 by June?

Contact your custodian and ask them to resend it or issue a duplicate. Provide your account number and the tax year in question. If the custodian cannot locate the form, ask for a written statement showing the contributions and account balance for that year.

Can I use Form 5498 to prove I made a contribution for tax purposes?

Yes. Form 5498 is the official record of contributions reported to the IRS. If you need to prove a contribution was made in a specific year, this form is the document to show. Keep it with your tax records.

What happens if Form 5498 shows the wrong contribution amount?

Contact your custodian when ready and provide proof of the correct amount (such as a deposit receipt or bank statement). The custodian will issue a corrected Form 5498 and send it to you and the IRS. You do not need to file an amended return unless the error affects your tax liability.

Does Form 5498 show earnings or investment gains?

No. Form 5498 shows only contributions and the total account balance. Earnings and investment gains are not itemized on this form. If you need a detailed breakdown of earnings, your custodian's year-end statement will show that information.