Coverdell ESA Contribution Information

2015

Department of the Treasury
Internal Revenue Service

Instructions for Form
5498-ESA
Coverdell ESA Contribution Information

Future Developments

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.

Reminder

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.

Section references are to the Internal Revenue Code unless
otherwise noted.
For the latest information about developments related to Form
5498-ESA and its instructions, such as legislation enacted after
they were published, go to www.irs.gov/form5498esa.
In addition to these specific instructions, you should also use the
2015 General Instructions for Certain Information Returns.
Those general instructions include information about the
following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.

You can get the general instructions at www.irs.gov/
form5498esa or by calling 1-800-TAX-FORM (1-800-829-3676).

Specific Instructions

File Form 5498-ESA, Coverdell ESA Contribution Information,
with the IRS by May 31, 2016, for each person for whom you
maintained any Coverdell education savings account (ESA)
during 2015.
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 2015, no return is required.
For contributions made between January 1, 2016, and April
18, 2016, trustees and issuers should obtain the participant's
designation of the year for which the contributions are made.
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.
Sep 23, 2014

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 furnish a statement to the beneficiary
(participant) by May 2, 2016.
For more information about the requirement to furnish
statements to participants, see part M in the 2015 General
Instructions for Certain Information Returns.
Truncating beneficiary’s identification number on payee
statements. Pursuant to Treasury Regulations 301.6109-4, all
filers of this form may truncate a beneficiary’s identification
number (social security number (SSN), individual taxpayer
identification number (ITIN), adoption taxpayer identification
number (ATIN), or employer identification number (EIN)) on
payee statements. Truncation is not allowed on any documents
the filer files with the IRS. A trustee or issuer's identification
number may not be truncated on any form. See part J in the
2015 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 2015 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,
2015, through April 18, 2016, designated for 2015.
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 2015 (see Rollovers and transfers,
earlier).

Cat. No. 34006Q