While you’re not legally required to send out updated IRA documents for these new rules until December 31, 2026, or a later date prescribed by the Treasury Secretary, it can be a smart move for your organization. Here’s why it matters and what you should be thinking about.
In the financial services industry, compliance is key, and when it comes to IRAs, withholding notice requirements are one area you don’t want to overlook. If a financial organization is found to be noncompliant by the IRS for not following federal tax withholding requirements on IRA distributions, it can result in hefty penalties.
Between IRS rules, natural disaster extensions, and the new SECURE 2.0 Act provisions, understanding what should (and shouldn’t) be included on Form 5498 can save you and your team headaches down the road.
IRA tax reporting can feel complicated at times, but with a little guidance, it doesn’t have to feel so daunting.
Whether your financial organization has been offering IRAs forever or you’re newer to the game, giving your program a refresh can do wonders—not just for your clients, but for your team and for your long-term goals.
