Coverdell ESA Contribution Information

2019

Department of the Treasury
Internal Revenue Service

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

Future Developments

For the latest information about developments related to
Form 5498-ESA and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form5498ESA.

Reminders

In addition to these specific instructions, you should also
use the 2019 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• Other general topics.

You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form5498ESA.
Online fillable form. Due to the very low volume of
paper Forms 5498-ESA received and processed by the
IRS each year, this form has been converted to an online
fillable format. You may fill out the form, found online at
IRS.gov/Form5498ESA, and send Copy B to the recipient.
For filing with the IRS, follow the applicable procedures for
filing electronically if you are filing 250 or more forms. For
Form 5498-ESA only, if you are filing this form on paper,
you may send in the black-and-white Copy A with Form
1096 that you print from the IRS website.

Specific Instructions

File Form 5498-ESA, Coverdell ESA Contribution
Information, with the IRS for each person for whom you
maintained any Coverdell education savings account
(ESA) during 2019.
A Coverdell ESA 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).
Oct 09, 2018

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,
later. If no reportable contributions were made for 2019,
no return is required.
For contributions made between January 1, 2019, and
April 15, 2020, 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.
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 furnish a statement to the
beneficiary (participant) by April 30, 2020.
For more information about the requirement to furnish
statements to participants, see part M in the 2019 General
Instructions for Certain Information Returns.
Truncating beneficiary’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of
this form may truncate a beneficiary’s TIN (social security
number (SSN), individual taxpayer identification number
(ITIN), adoption taxpayer identification number (ATIN), or
employer identification number (EIN)) on payee

Cat. No. 34006Q

statements. Truncation is not allowed on any documents
the filer files with the IRS. A trustee’s or issuer's TIN may
not be truncated on any form. See part J in the 2019
General Instructions for Certain Information Returns.

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 2019 (see Rollovers and
Transfers, earlier).

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 2019
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, 2019, through April 15, 2020, designated for
2019.

-2-

Instructions for Form 5498-ESA (2019)