IRA FMV and Contribution Report Wizard Instructions for Tax Reporting Service Clients

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1 IRA FMV and Contribution Report Wizard Instructions for Tax Reporting Service Clients Wizard Purpose The IRA FMV and Contribution Report Wizard must be completed by financial organizations with a 5498 reporting option of Online for Traditional, Roth, and SIMPLE IRAs (as applicable). The report wizard documents the fair market values (FMVs) and tax year 2017 reportable IRA contributions that were entered in IRAdirect by financial organization staff from January 1, 2017, through 9:00 p.m. Central Time on April 17, When the report wizard is completed, Ascensus will use the information to produce IRS Forms 5498 for your organization s IRA owners. The FMV and contribution information for each account owner is then reported to the IRS as required. Your Task The Deadline For each account listed in the report wizard, validate or correct any values that appear, and as necessary, enter the tax year 2017 reportable contributions, December 31, 2017, FMV, hard-to-value asset FMV, and hardto-value asset type code(s) in the designated fields. (Hard-to-value asset information is only editable if the hard-to-value asset indicator is set on the account owner level in IRAdirect.) The IRA FMV and Contribution Report Wizard must be completed by the end of business on May 8, Approximately one hour after the report wizard is completed and submitted, a date will appear in the 5498 Date Information Processed field on your organization s Reporting page. If the report wizard is not completed, a date will not appear in this field and the necessary tax forms will not be produced for your organization s account owners. What s New? A new column, Self-Certified Late Rollover Cont Amount, appears in the report wizard to enter or correct the amount of any self-certified late rollovers completed in 2017 by your organization s account owners. Because the IRS requires self-certified late rollovers to be reported in a separate box on Form 5498 for tax year 2017, these transactions should only be entered in the Self-Certified Late Rollover Cont Amount column. Do not enter any self-certified late rollover amounts in the Rollover Cont Amount column, which should only be used to report rollovers completed within the 60-day deadline. What defines a self-certified late rollover? Pursuant to IRS Revenue Procedure , account owners may complete rollover contributions that miss the 60-day rollover deadline if they certify that the deadline was missed for one of the following reasons. The distribution was in the form of a check and the check was misplaced or never cashed. The distribution was deposited into and remained in an account that the owner mistakenly thought was an IRA. The owner s principal residence was severely damaged. One of the owner s family members died. The owner or one of the owner s family members was seriously ill. The owner was incarcerated. Restrictions were imposed by a foreign country. 1

2 A postal error occurred. The distribution was made due to an IRS levy and the assets have been returned to the owner. The party making the distribution delayed providing information that the receiving IRA required to complete the rollover despite the owner s reasonable efforts to obtain the information. An error was committed by the organization making the distribution or receiving the contribution. Also new for tax year 2017, the report wizard will indicate if any postponed contributions were added to an account owner s tree in IRAdirect. Postponed contributions are rare IRA contributions made in the current tax year but designated for a prior year by account owners that have served in a specific combat zone, hazardous duty area, or direct support area; or are affected by a federal designated disaster area. If a postponed contribution was added to an account owner s tree in IRAdirect, the report wizard will show (PC) in the Regular Cont Amount column for the account owner. However, any amounts shown in this column only reflect the amount of regular contributions the account owner made for tax year To see the actual amount of a postponed contribution that will be reported on an account owner s Form 5498 (or to make any changes to the amount), you must view the RU-Contribution for the postponed contribution that is listed on the account owner s tree. Report Wizard Guidelines When entering a dollar value, use a decimal point, but do not use a comma or dollar sign. If you attempt to make changes to the FMV amount in the owner tree when there are changes pending in the report wizard, you will see this warning message: This value has an update pending from your wizard entries. If you proceed, this value will be overwritten when your wizard entries are applied to IRAdirect. Click OK to save this change. If you attempt to make changes to a rolled up contribution amount in the owner tree when there are changes pending in the report wizard, you will see this warning message: This value was updated in the report wizard. Any change made at the account level will be overwritten when the report wizard entries are applied. If you still want to save your change, click OK. The only exception is making changes to a rolled up postponed contribution amount in the owner tree, which can be saved without receiving an error message because postponed contributions can only be updated, added, or viewed on the owner tree, not in the report wizard. If you update a rolled up contribution amount or the FMV at the owner s account level in the tree, those updates will be reflected in the report wizard. The row for the updated owner will be highlighted in yellow. If you make changes at the owner account level to an IRA owner s information (name, SSN, account number, account status) or to any contributions that were not rolled up, those changes will not be reflected in the report wizard. 2

3 Getting Started Create the Pre-5498 Verification Report The verification report documents the FMVs and tax year 2017 contributions currently in IRAdirect for your financial organization. Please print the report before making entries in the IRA FMV and Contribution Report Wizard. We recommend that you document your entries on the printed Pre-5498 Verification Report, and then work from the report to make entries in the report wizard. As you enter and save information in the IRA FMV and Contribution Report Wizard and again produce the Pre-5498 Verification Report, your wizard entries are reflected in the report, making it easy to track your progress. To produce the Pre-5498 Verification Report, take the following steps. 1. Click the Reports link in the Reports and Queues section of the IRAdirect homepage. 2. Click the Pre-5498 Verification Report link in the General and Ad Hoc Reports section of the Reports page. 3. Click the Generate Report button to produce the report. 4. Print the report. Select Report Wizard Parameters Before making entries in the report wizard, make the following selections at the top of the screen. 1. Go to the Maximum Number of Accounts to Display field and select either 25 or 50 accounts to appear on each entry screen. The default setting is Go to the Sort Order of Accounts field and select the order in which you want the accounts displayed. We recommend that you match the order in which accounts appear on the Pre-5498 Verification Report. 3. Go to the Search field and select the transaction type from the drop-down menu. To begin or continue your report wizard entries, select Unprocessed Transactions, which is the default setting. To view or change report wizard entries already saved, select Processed Transactions. 4. Click the Search button to submit the request to IRAdirect. The report wizard will display the accounts according to your selections. Using the Report Wizard Navigating The report wizard opens in a new window, and entries can be made by only one staff person at a time. After taking action for all the accounts on the screen, click the report wizard s Next link to display the next screen of IRA records. Clicking the Next link automatically saves the entries on the screen you are leaving. Do not use the browser navigational tools. As you continue, you will see your progress reflected in the upper left corner of the report wizard screen. For example, if you have 75 accounts and have entered information for 25 accounts, you will see Processed 25 of 75. 3

4 Searching for Records To search for records in the report wizard, move to the Search field near the top of the screen. Select Unprocessed Transactions or Processed Transactions from the drop-down menu and click the Search button. Unprocessed Transactions are accounts in the report wizard for which you have not taken action, either by entering or correcting FMV or contribution information, or checking the Process Without Changes box. Processed Transactions are accounts in the report wizard for which you have entered or corrected FMV or contribution information, or checked the Process Without Changes box. If you search for Unprocessed Transactions and no unprocessed transactions (records) remain, the following message appears. All records have been processed and will be applied in about one hour. 4

5 Accounts Opened in 2018 Accounts with a 2018 opened date appear in the report wizard so you can enter any regular contributions for tax year 2017 that were made between January 1, 2018, and April 17, 2018, if applicable. An account with a 2018 opened date should not have any other 2017 contribution activity. If you have an IRA application with a 2017 signature date for an account that we show as being opened in 2018, and that account has contributions made during 2017, an Advanced User must take the following steps before entering information in the report wizard. 1. Click Next to save your records. Then click the X in the upper right corner to exit the report wizard. 2. Search for the IRA owner in IRAdirect. 3. Click the Acct link for the applicable IRA when the account owner is displayed in the tree. 4. Change the information in the Open Date field on the Account screen to reflect the signature date on the IRA application. The Open Date field is in the Account Info section of the page. 5. Click the Save button. 6. Click the IRA FMV and Contribution Report Wizard link in the Reports and Queues section of the IRAdirect homepage to return to the report wizard. The applicable fields are now available in the report wizard, and the contributions made to the account in 2017 can be entered. Entering Information 1. Information can be entered only if a box appears. If there is no box, the field cannot be updated. 2. If you have nothing to enter or change for a field, leave the box blank. 3. If an amount that appears above a box is incorrect, enter the correct amount in the box. NOTE: If a postponed contribution is listed on an account owner s tree (this is rare), (PC) will appear below the owner s Regular Cont Amount field to indicate that a postponed contribution is listed on the tree for the owner. But the amount of the postponed contribution will not be listed in the report wizard and can only be viewed and updated on the owner tree. Any amounts that appear in the Regular Cont Amt column (either above or within the box) refer to only the regular contributions made to the account for tax year If an IRA contains any hard-to-value assets, a Hard-to-Value FMV Amount and Asset Type Code(s) column will appear in the report wizard. You must enter the hard-to-value asset FMV amount and a hard-to-value asset type code for the applicable account owner. A maximum of two codes can be entered. If more than two codes apply, code H should be entered. The following page lists the applicable codes that may be used. 5

6 A Stock or other ownership interest in a corporation that is not readily tradable on an established securities market B Short or long-term debt obligation that is not traded on an established securities market C Ownership interest in a limited liability company or similar entity (unless the interest is traded on an established securities market) D Real estate E Ownership interest in a partnership, trust, or similar entity (unless the interest is traded on an established securities market) F Option contract or similar product that is not offered for trade on an established option exchange G Other asset that does not have a readily available FMV H More than two types of assets (listed in A through G) are held in this IRA Accounts Without Changes If the information listed for the account does not require any changes or new entries, check the Process Without Changes box. If none of the displayed accounts require changes (no corrections or new entries are necessary), click the Check All button to check the Process Without Changes box for every account on the page. Once clicked, the Check All button will revert to Uncheck All. (Reminder: You may have to scroll down to see the number of accounts you elected to display at one time.) Accounts With Changes If any of the accounts on the page require changes or new information to be entered, using the Check All button is not applicable. Instead, you must enter the changes for the accounts that require them, and check the Process Without Changes box for each account on the page that does not have any changes. Remember: Changes to postponed contributions must be made in the account owner tree and cannot be made in the report wizard. Postponed contributions are rare, but if you make changes to the RU-Contribution amount on the owner tree for a postponed contribution and no other changes are needed in the report wizard, you must check the Process Without Changes box to process the transaction and correctly report the changes made to the postponed contribution on the tree. If you do not check the Process Without Changes box for each account with no changes, those accounts will continue to appear in the report wizard s list to be updated, and the accounts you have updated will not be applied to IRAdirect. 6

7 What If? If you mistakenly enter an amount for an account, you can delete the information if you have not yet clicked Next to move to the next page of accounts. You can then correct the information, or check the Process Without Changes box, whichever is applicable. Likewise, if you mistakenly check the Process Without Changes box for an account and have not yet clicked Next, you can click the box again to uncheck it for that account. Once you click Next to move to the next page of accounts, you cannot return to the previous page of accounts. If entries or changes are needed after you have left a page but before the entire report wizard is completed, use the Search feature at the top of the report wizard screen to view Processed Transactions. You can then make any additional changes to those records before processing the entire report wizard. If you find that you need to make a change to a contribution after you have completed and submitted the report wizard, refer to the Making Changes after Submitting the Report Wizard section on page 10 of these instructions. 7

8 Saving, Submitting, and Exiting If you have records remaining to be updated, take the following steps. 1. Click Next to automatically save your entries and load the next page of accounts. 2. You may continue to work, or you may click the X in the upper right corner to exit the report wizard and return to the homepage. Any records yet to be updated will be loaded and ready for you to work on the next time you access the report wizard. If you have taken action for every account in the report wizard, take the following steps. 1. Click Next to automatically save your final entries. You will see your completion status reflected in the upper left corner of the report wizard screen. 2. Look for the success message. The message below should appear as confirmation that all of your records have been updated, processed, and submitted to IRAdirect. If the success message below does not appear, it means that you have not yet taken action for every account in the report wizard. Your changes have been saved. All records have been processed and will be applied in about one hour. 3. Click the X in the upper right corner to exit the report wizard and return to the homepage. 8

9 Report Wizard Confirmation You can confirm that your report wizard entries were received and applied. After an hour has passed since you completed the IRA FMV and Contribution Report Wizard, take the following steps. 1. Click your organization s name in the upper right corner of the IRAdirect homepage. 2. Click the Reporting tab. 3. Check the Date Information Processed field in the 5498 row on the Reporting tab. If your organization s report wizard information has been applied to IRAdirect, a date will appear in the field. Review the Information Report After the information has been successfully transmitted through the report wizard, Ascensus will be ready to produce Forms 5498 for your financial organization. Tax forms are produced every Tuesday, Thursday, and Friday morning before business hours. The first productions of Forms 5498 will occur in three phases as outlined below. May 10, 2018, for CID numbers from May 11, 2018, for CID numbers from May 15, 2018, for CID numbers from After our first production run, the 5498 Information Report will be available, which documents the information being reported to the IRS for each listed IRA owner. (Subsequent information reports can be accessed and reviewed by selecting the applicable forms production date from the menu on the report s parameters page.) Take the following steps to access the 5498 Information Report. 1. Click the Reports link in the Reports and Queues section of the IRAdirect homepage. 2. Click the Current Tax Year 5498 Information Report link. 3. Click the Report Instructions button and print the instructions. 4. Click the Generate Report button to produce a PDF version of the report or click the Output to Excel button to produce an Excel spreadsheet version. 5. If corrections are necessary, enter the changes in IRAdirect as outlined in the report instructions. 9

10 Making Changes after Submitting the Report Wizard If you have completed and submitted the report wizard and then realize that an account for which you checked the Process Without Changes box actually needs a correction to the contribution information added, changes can be made as outlined below if tax forms have not yet been produced for your financial organization. Changing Dollar Amounts 1. To change the dollar amounts when the contribution type is the same, go to the IRA contribution in the tree with the RU-Contribution indicator. 2. Replace the RU-Contribution amount with the correct contribution total, correct other dollar amounts (if applicable), and then click the Save button. 3. If the FMV needs to be added or changed for the account, enter the new or corrected FMV under the 12/31/2017 FMV field in the tree. Changing the Contribution Type 1. Change the RU-Contribution amount to zero (0.00) and save the change. 2. Scroll to the For this Account box at the bottom of the account owner s Account screen. 3. Enter a new contribution with the correct contribution type by taking the following steps. Click the Create Contribution radio button and click the Continue button. Provide the information requested on the Contribution screen. When all information has been entered, click the Save button. Once tax forms are produced for your financial organization, any subsequent contribution corrections must be entered in IRAdirect as outlined in the instructions provided with the 5498 Information Report. Making changes after tax forms have been produced means the IRA owner will receive a corrected Form Questions If you have questions about completing the IRA FMV and Contribution Report Wizard, please contact IRA Processing at between 8:00 a.m. and 5:00 p.m. Central Time, Monday through Friday. Ascensus and the Ascensus logo are registered trademarks of Ascensus, LLC. 10 IRAdirect is a registered trademark of Ascensus, LLC. Copyright 2018 Ascensus, LLC. All Rights Reserved