IRS Form 5498-ESA – Coverdell ESA Contribution Information – In today’s educational landscape, saving for future learning expenses is more important than ever. One popular tool for this is the Coverdell Education Savings Account (ESA), a tax-advantaged account designed to help families cover qualified education costs. If you’ve contributed to a Coverdell ESA, you’ll likely receive IRS Form 5498-ESA, which details your contribution information. This SEO-optimized guide explains everything you need to know about Form 5498-ESA, including its purpose, key details, filing requirements, and how it impacts your taxes. We’ll use the latest information from trusted sources like the IRS to ensure accuracy as of 2026.
What Is IRS Form 5498-ESA?
IRS Form 5498-ESA, titled “Coverdell ESA Contribution Information,” is an informational tax form used to report contributions made to a Coverdell Education Savings Account. Unlike forms you file yourself, this document is prepared and sent by the financial institution (trustee or issuer) managing the ESA. It’s provided to both the account beneficiary and the IRS for record-keeping purposes.
A Coverdell ESA is a custodial or trust account set up exclusively in the United States to pay for qualified education expenses of a designated beneficiary. These expenses can include tuition, books, supplies, and even room and board for elementary, secondary, or higher education. The form ensures transparency in contributions and helps prevent over-contributions that could trigger penalties.
The Purpose of Form 5498-ESA
The primary goal of Form 5498-ESA is to document contributions and rollovers to Coverdell ESAs for a given calendar year. This helps the IRS track tax-advantaged savings while providing beneficiaries with a record for their own tax planning. Key purposes include:
- Reporting Contributions: It shows regular contributions made during the year, including those up to the tax filing deadline in the following year.
- Tracking Rollovers: Any transfers or rollovers from other accounts are detailed to ensure they qualify for tax-free treatment.
- Preventing Excess Contributions: By highlighting totals, it alerts beneficiaries if they’ve exceeded limits, allowing time to withdraw funds and avoid excise taxes.
- Basis Tracking: Beneficiaries use this information to maintain records of their ESA basis (total contributions minus distributions), which is crucial for determining taxable portions of future withdrawals.
If no contributions or rollovers occurred in the year, the trustee isn’t required to issue the form. However, for accounts with distributions but no new contributions, Form 1099-Q is used instead for reporting payouts.
Key Sections and Boxes on Form 5498-ESA
Form 5498-ESA is straightforward, with specific boxes for different types of information. Here’s a breakdown based on the latest December 2026 revision:
- Box 1: Coverdell ESA Contributions: This reports the total contributions (excluding rollovers) made on behalf of the beneficiary for the calendar year, including those made by April 15 of the following year. These amounts are not deductible on your income tax return.
- Box 2: Rollover Contributions: This includes any rollovers, such as direct trustee-to-trustee transfers, contributions from military death gratuities, or transfers from another Coverdell ESA. Rollovers are generally tax-free if they meet IRS rules, like being completed within 60 days.
Other details on the form include the trustee’s and beneficiary’s names, addresses (now with separated fields for easier processing), Taxpayer Identification Numbers (TINs), and an account number. The beneficiary’s TIN may be truncated (showing only the last four digits) on your copy for security, but the full TIN is reported to the IRS.
For more details on Coverdell ESAs, including qualified expenses, refer to IRS Publication 970, Tax Benefits for Education.
Coverdell ESA Contribution Limits and Rules
Contributions to a Coverdell ESA are limited to $2,000 per beneficiary per year, regardless of how many accounts they have or who contributes (e.g., parents, grandparents). This limit applies to the total across all ESAs for the same beneficiary. If contributions exceed $2,000, the excess plus any earnings must be withdrawn by May 31 of the following year to avoid a 6% excise tax.
Key rules include:
- Eligibility: Contributors must have modified adjusted gross income (MAGI) below certain thresholds to make full contributions (phased out between $95,000–$110,000 for single filers and $190,000–$220,000 for joint filers).
- Age Limits: Contributions can only be made until the beneficiary turns 18, unless they have special needs.
- Rollover Guidelines: Rollovers to another ESA for the same beneficiary or a family member (under age 30) are allowed once every 12 months. Family members include spouses, children, siblings, parents, and even first cousins.
- Tax Treatment: Earnings grow tax-free, and qualified distributions are not taxable. Non-qualified withdrawals may incur income tax and a 10% penalty.
As of 2026, there are no changes to these limits, but always check IRS.gov for updates.
Filing Deadlines for Form 5498-ESA
Trustees must handle Form 5498-ESA on a specific timeline to accommodate late contributions:
- To the Beneficiary: A copy must be furnished by April 30 of the year following the contribution year (e.g., for 2025 contributions, by April 30, 2026).
- To the IRS: The form must be filed by May 31 of the year following the contribution year (e.g., for 2025, by May 31, 2026).
Electronic filing is required if the trustee files 10 or more information returns in a year, using the IRS’s IRIS portal. Penalties apply for late or incorrect filings, as outlined in IRS Publication 1099.
How Form 5498-ESA Affects Your Taxes?
You don’t need to attach Form 5498-ESA to your tax return—it’s for informational purposes only. However, it helps you:
- Verify contributions against your records.
- Calculate any excess contributions and withdraw them timely.
- Track your ESA basis for future distributions reported on Form 1099-Q.
If you’re the beneficiary or responsible party, use this form to ensure compliance and maximize tax benefits for education savings.
Download IRS Form 5498-ESA PDF
To view or download the latest version of Form 5498-ESA, visit the official IRS website. The direct download link is: https://www.irs.gov/pub/irs-pdf/f5498e.pdf. This is the December 2026 revision, suitable for reporting 2025 and later contributions.
Frequently Asked Questions About Form 5498-ESA
1. What if I don’t receive Form 5498-ESA?
Contact your ESA trustee. If no contributions were made, the form isn’t required.
2. Can I contribute to a Coverdell ESA after the tax deadline?
No—contributions for a given year must be made by April 15 of the following year, but they’re reported on that year’s form.
3. Are Coverdell ESA contributions tax-deductible?
No, unlike some retirement accounts, these contributions are made with after-tax dollars, but earnings grow tax-free.
4. What’s the difference between a Coverdell ESA and a 529 Plan?
Coverdell ESAs have lower contribution limits but can cover K-12 expenses, while 529 plans have higher limits and are state-sponsored.
For the most current details, always consult IRS.gov or a tax professional. This guide is based on 2026 IRS guidelines and is not a substitute for personalized advice.