Discussion:Missed IRA deduction

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Discussion Forum Index --> Basic Tax Questions --> Missed IRA deduction
Discussion Forum Index --> Tax Questions --> Missed IRA deduction

Smokeytax (talk|edits) said:

30 September 2009
Client contributed $4,000 to an IRA in April of 2008 for 2007. The 5498 was issued showing the $4,000 as a 2007 contribution.

But, the deduction was left off of the 2007 return.

Can we deduct it on the 2008 return?

Does the 5498 govern, and does the IRS try to match IRA deductions to the 5498's?

Any thoughts?

Thanks

Ss-cpa (talk|edits) said:

30 September 2009
I always thought the Form 5498 reported the contributions on a calendar year basis. In other words, if the contribution was made in April, 2008, then it could only be reported on the 2008 Form 5498. If this is the case, then I wonder if he had a separate $4,000 contribution in 2007, which resulted in the $4,000 being reported on the 2007 5498. If I am mistaken, then I think you can allocate it to either year. I would contact the brokerage to confirm. I think they actually designate the year.

Blrgcpa (talk|edits) said:

30 September 2009
It has to be deducted in the year for which it was intended.

NoVATaxes (talk|edits) said:

1 October 2009
I think the 5498 is issued on a 'contribution year' (1/1/Y1 - 4/15/Y2) basis. That's why it comes out in May and not earlier. So a contribution for 2008 made in April 2009 would show up on the 2008 5498, but a contribution for 2009 made in April 2009 would not.

As already stated, the deduction can only be made in the year for which it was designated. If there was an error on the custodian's part, then it should be corrected and a new 5498 issued.

Wonder Woman USA (talk|edits) said:

1 October 2009
The 5498 shows the value of the IRA at 12/31 of the previous year; this has nothing to do with the contribution.

If it was contributed for 2007 and qualifies for a deduction, you'll have to amend the 2007 return.

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