We have always sent end of year IRA statements to our customers. Our core processor told me that they are not required and that many banks do not send them out. Is that true? I figured they were required. Thanks

The requirement to send to the customer and report to the IRS on From 5498 or IRAs is still in effect. You might want to ask them why they feel it is not??

We do send out the 5498's. This is a separate statement that is sent to all customers, not just those requiring 5498's.

A lot of folks use the 'statement' to provide the Fair Market Value to the account holder, which is required by 01/31. Then they send the 5498 after tax day (April 17 this year).

Others send 5498's to everyone in January to satisfy the FMV requirement and then update the 5498 for any prior year contributions that occur before tax day.

This is from our IRA 'bible' that we maintain from our IRA consultant, Collin W Fritz and Associates.

"In order for the IRS to determine if an IRA accountholder or an IRA beneficiary has properly reported IRA transactions, the IRA custodian/trustee must furnish the IRS and the accountholder or beneficiary with certain information regarding contributions and the fair market value of each IRA as of 12/31 each year.

The custodian/trustee has two reporting forms to prepare and funish to the accountholder, a beneficiary who has acquired the account because the accountholder has died, and the IRS. The first reporting form has come to be called the "January statement" since it is required to be furnished by January 31 of the year which follows the year to be reported. The IRS requires that the custodian/trustee inform the accountholder or beneficiary of the IRA's fair market value as of December 31 of each year by the last day of the following January. Note that the January statement is not furnished to the IRS. The accountholder or beneficiary may need this fair market value information to prepare their income tax return for such year.

The second reporting form is the Form 5498. It is required to be furnished to the accountholder, inheriting beneficiaries, and the IRS."

Hope this helps!