Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

End of Year Tax Reporting—Make sure your credit union is prepared! (Webinar Slides) | Ascensus

1,112 views

Published on

Overwhelmed about tax reporting for Individual Retirement Accounts, Coverdell ESAs, or Health Savings Accounts? Then, this timely webinar is just what you need. If you haven’t started planning for tax reporting season, it’s not too late. Whether you’re new to tax reporting, or need to freshen up your understanding of the regulations, this webinar will help you make sure your credit union is prepared. In this webinar, you will learn basic tax reporting information on these accounts and more. This webinar will cover IRA, ESA, HSA tax forms and due dates. You will learn to identify due dates for tax forms to account owners and the IRS, and to determine which tax forms are needed for each account type. Learn more at www.nafcu.org/ascensus

  • Be the first to comment

  • Be the first to like this

End of Year Tax Reporting—Make sure your credit union is prepared! (Webinar Slides) | Ascensus

  1. 1. TAX REPORTING RESPONSIBILITIES Today’s Instructor: Paul Kern CIS, CIP, CISP©2012 Ascensus, Inc. www.nafcu.org/aschandouts
  2. 2. Learning Objectives After completing this session, you will be able to Identify the IRA, HSA, and ESA tax forms required for contributions and distributions; Recite the IRA, HSA, and ESA tax form due dates to the account owners and the IRS; and Analyze current tax year processes to assure accurate reporting and compliance.©2012 Ascensus, Inc. Page 1
  3. 3. IRA Tax Reporting Timeline Distribution Occurred Regular Contribution Occurred for Tax Year Deadline to report IRA distributions and Deadline to FMV/RMD electronically to IRA account Deadline to report IRA make regular owners distributions to IRA Deadline to the IRS. contributions. report IRA contributions to account owners and IRS.©2012 Ascensus, Inc. Page 2
  4. 4. 2012 IRS Form 1099-R Traditional and Roth IRAs IRA distributions are reported to the account owner and to the IRS using IRS Form 1099-R.©2012 Ascensus, Inc. Pages 2-3
  5. 5. IRA Distributions Credit unions generally must report all IRA distributions taken during a year. • Report must be sent by January 31 to the account owner and by March 31 to the IRS.©2012 Ascensus, Inc. Page 2
  6. 6. Required Minimum Distributions The credit union must provide the required minimum distribution (RMD) amount due for the year or it must offer to calculate the RMD amount for each Traditional IRA account owner attaining age 70½ or older. The due date for this form is also January 31.©2012 Ascensus, Inc. Page 4
  7. 7. Reporting the RMD to the Account owner Reporting to the Account owner The credit union is required to notify Traditional account owners age 70½ or older and those approaching age 70½ of the estimated RMD and deadline for the year. • This form must be sent by January 31 every year.©2012 Ascensus, Inc. Page 4
  8. 8. Reporting the RMD to the IRS Reporting to the IRS Your credit union is required to notify the IRS if a Traditional account owner is required to receive an RMD for the year indicated on the IRS Form 5498. • Box 11 will be marked.©2012 Ascensus, Inc. Page 5
  9. 9. 2012 IRS Form 5498 Traditional and Roth IRAs IRA contributions are reported to the account owner and to the IRS using IRS Form 5498.©2012 Ascensus, Inc. Page 6
  10. 10. IRA Contributions The credit union is generally required to report all IRA contributions for a given year to the account owner and to the IRS by May 31 of the following year.©2012 Ascensus, Inc. Page 6
  11. 11. FMV Reporting The credit union is required to report each accounts balance as of the close of business on December 31 to the account owner by January 31 and to the IRS by May 31. This is balance is known as the fair market value (FMV). • There is no formal form for reporting the FMV.©2012 Ascensus, Inc. Page 6
  12. 12. ESA Tax Reporting Timeline Distribution Occurred Regular Contribution Occurred for Tax Year Deadline to report ESA distributions to Deadline to designated electronically Deadline to beneficiaries. report ESA make regular distributions to ESA Deadline to the IRS. Deadline to contributions. report ESA report ESA contributions contributions to to designated IRS. beneficiaries.©2012 Ascensus, Inc. Page 7
  13. 13. 2012 IRS Form 1099-Q Coverdell ESAs ESA distributions are reported to the ESA designated beneficiary and to the IRS using IRS Form 1099-Q.©2012 Ascensus, Inc. Pages 7-8
  14. 14. ESA Distributions Credit unions generally must report all ESA distributions taken during a year. • Report must be sent by January 31 to the designated beneficiary and by March 31 to the IRS.©2012 Ascensus, Inc. Page 7
  15. 15. 2012 IRS Form 5498-ESA Coverdell ESAs ESA contributions are reported to the account owner and to the IRS using IRS Form 5498-ESA.©2012 Ascensus, Inc. Page 9
  16. 16. ESA Contributions The credit union is generally required to report all ESA contributions for a given year to the ESA designated beneficiary by April 30 and to the IRS by May 31 of the following year.©2012 Ascensus, Inc. Page 9
  17. 17. HSA Tax Reporting Timeline Distribution Occurred Regular Contribution Occurred for Tax Year Deadline to report HSA distributions to Deadline to account owners electronically Deadline to report HSA make regular distributions to HSA the IRS. Deadline to contributions. report HSA contributions to account owners and IRS.©2012 Ascensus, Inc. Page 10
  18. 18. HSA Distributions Credit unions generally must report all HSA distributions taken during a year. • Report must be sent by January 31 to the account owner and by March 31 to the IRS.©2012 Ascensus, Inc. Page 10
  19. 19. 2012 IRS Form 5498-SA HSAs HSA contributions are reported to the account owner and to the IRS using IRS Form 5498-SA.©2012 Ascensus, Inc. Page 12
  20. 20. 2012 IRS Form 1099-SA HSAs HSA distributions are reported to the account owner and to the IRS using IRS Form 1099-SA.©2012 Ascensus, Inc. Pages 10-11
  21. 21. HSA Contributions The credit union is generally required to report all HSA contributions for a given year to the account owner and to the IRS by May 31 of the following year.©2012 Ascensus, Inc. Page 12
  22. 22. In Review...©2012 Ascensus, Inc. Pages 13-14
  23. 23. TAX REPORTING RESPONSIBILITIES Paul Kern CIS, CIP, CISP paul.kern@ascensus.com©2012 Ascensus, Inc.

×