Contributions
Contributions for all types of IRAs—Roth, traditional, SEP, and SIMPLE—are reported on Form 5498.
Taxes
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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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.
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.
If you contributed or converted in 2020 and recharacterized in 2021
You'll see an "R" in Box 7 of Form 1099-R.
Although the original contribution or conversion took place in 2020, the recharacterization will be reported for the 2021 tax year.
If you contributed and then recharacterized, all in 2021
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.
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*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.