Coverdell ESA Contribution Information

2012

Department of the Treasury
Internal Revenue Service

Instructions for Form
5498-ESA
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New
Truncating recipient’s identification number on paper
payee statements. Notice 2011-38 allows all filers of this form
to truncate a recipient’s identification number (social security
number (SSN), individual taxpayer identification number (ITIN),
or adoption taxpayer identification number (ATIN)) on paper
payee statements for tax years 2011 and 2012. See part M in
the 2012 General Instructions for Certain Information Returns.

Reminders
General Instructions. In addition to these specific
instructions, you should also use the 2012 General Instructions
for Certain Information Returns. Those general instructions
include information about the following topics.
• Backup withholding.
• Electronic reporting requirements.
• Penalties.
• Who must file (nominee/middleman).
• When and where to file.
• Taxpayer identification numbers.
• Statements to recipients.
• Corrected and void returns.
• Other general topics.
You can get the general instructions at IRS.gov or by calling
1-800-TAX-FORM (1-800-829-3676).
How to get the latest information. If there are changes to the
2012 tax law that affect Form 5498-ESA, you will be able to find
them at www.irs.gov/form5498esa.

Specific Instructions
File Form 5498-ESA, Coverdell ESA Contribution Information,
with the IRS by May 31, 2013, for each person for whom you
maintained any Coverdell education savings account (ESA)
during 2012.
A Coverdell education savings account is a trust or custodial
account created or organized in the United States exclusively
for the purpose of paying the qualified education expenses of
an individual who is the designated beneficiary of the trust or
custodial account. The account must be designated as a
Coverdell ESA at the time it is created or organized in order to
be treated as a Coverdell ESA for tax purposes. The governing
instrument creating the trust must meet the requirements of
section 530(b)(1).
Contributions. You must report contributions, including
rollover contributions, to any Coverdell ESA on Form
5498-ESA. See the instructions under box 1 and box 2. If no
reportable contributions were made for 2012, no return is
required.
For contributions made between January 1, 2013, and April
15, 2013, trustees and issuers should obtain the participant’s
designation of the year for which the contributions are made.

Oct 13, 2011

Rollovers and transfers. Report on Form 5498-ESA all
rollovers, including a direct trustee-to-trustee transfer from one
Coverdell ESA to another Coverdell ESA. A rollover can be
made from certain U.S. Savings Bonds or another Coverdell
ESA. The contribution of a military death gratuity to a Coverdell
ESA is a rollover contribution. Any amount distributed from a
Coverdell ESA may be rolled over to another Coverdell ESA
and is not taxable if it is for the benefit of the same beneficiary
or a member of the beneficiary’s family.
Family member. Family members of the designated
beneficiary include the beneficiary’s spouse. Also included are
the beneficiary’s children, stepchildren, foster children, and their
descendants; siblings and their children; parents, their siblings,
and ancestors; stepparents; in-laws; the spouse of any of the
foregoing; and any first cousin of the designated beneficiary.
Total distribution, no contributions. Generally, if a total
distribution was made from an account during the year and no
contributions (including rollovers) were made for that year, you
do not need to file Form 5498-ESA.
Distributions. Report distributions from any Coverdell ESA on
Form 1099-Q, Payments From Qualified Education Programs
(Under Sections 529 and 530). Any change in the beneficiary of
the Coverdell ESA is not treated as a distribution if the new
beneficiary is a family member (see above) of the prior
beneficiary and has not reached the age of 30 (except for a
beneficiary with special needs).
Statements to participants. If you are required to file Form
5498-ESA, you must provide a statement to the beneficiary
(participant) by April 30, 2013.
For more information about the requirement to furnish
statements to participants, see part M in the 2012 General
Instructions for Certain Information Returns.
Account number. The account number is required if you have
multiple accounts for a recipient for whom you are filing more
than one Form 5498-ESA. Additionally, the IRS encourages you
to designate an account number for all Forms 5498-ESA that
you file. See part L in the 2012 General Instructions for Certain
Information Returns.

Box 1. Contributions (Other Than Amounts in
Box 2)
Enter contributions to a Coverdell ESA made from January 1,
2012, through April 15, 2013, and designated for 2012.
Do not include rollovers in box 1. Report rollovers in
box 2.

Box 2. Rollover Contributions
Enter any rollover contributions (including a military death
gratuity and trustee-to-trustee transfer) to this Coverdell ESA
received by you during 2012 (see Rollovers and transfers
earlier).

Cat. No. 34006Q