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Planning for retirement

Tax reporting for IRA contributions, conversions & recharacteriza­tions

Already have an IRA? Here are some brief explanations for how we report IRA contributions, conversions, and recharacterizations for tax purposes.
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Max out your contributions to your employer plan

After you've saved up to the match in your employer plan and maxed out your IRA, go back to your employer plan. The 2024 annual limit for employee contributions is $23,000 ($30,500 if you're age 50 or older and your plan allows catch-up contributions.)

Contributions

Contributions for all types of IRAs—Roth, traditional, SEP, and SIMPLE—are reported on Form 5498.

Review current IRA contribution limits

Conversions

Conversions from a traditional IRA to a Roth IRA are reported on Form 1099‑R.

The distribution code in Box 7 is determined by your age at the time you converted.

Learn more about Roth conversions

Recharacterizations

Recharacterizations from a Roth IRA to a traditional IRA—and vice versa—are reported on 2 different tax forms:

  • Form 1099-R reports the distribution.
  • Form 5498 reports the contribution.

Learn more about IRA recharacterizations

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Find out when tax forms for your IRAs are available

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If you contributed or converted in 2021 and recharacterized in 2022

You'll see an "R" in Box 7 of Form 1099-R.

Although the original contribution or conversion took place in 2021, the recharacterization will be reported for the 2022 tax year.
 

If you contributed and then recharacterized, all in 2022

You'll see an "N" in Box 7 of Form 1099-R.
 

If you recharacterize a contribution in 2022

Since the recharacterization takes place in the 2022 tax year, you'll receive the tax form that reports the transaction in early 2023.

We're here to help

Have questions? Contact us. 

Need more information?

Refer to your year-end Vanguard statement

Your statement provides detailed breakdowns of distributions by account type and transaction type.

Visit irs.gov

Review details on contributions, conversions, and recharacterizations, as well as deduction allowances, inherited IRAs, rollovers, and more.

Open your IRA today

Open your IRA today

*While our specialists are qualified to provide information about Vanguard products and services, they can't provide tax advice. If your tax situation is complex or if you're uncertain about the interpretation of a specific tax law, we recommend that you consult a qualified tax advisor.