What is a Coverdell ESA?
A Coverdell ESA is a trust or custodial account used to pay for the qualified education expenses of a designated beneficiary.
Who Must File 5498-ESA?
The trustee or issuer of a Coverdell ESA must file 5498-ESA for each person for whom they maintained an account. However, Form 5498-ESA only needs to be filed if contributions were made to that account for the calendar year.[1]
Deadlines
The deadline to file 5498-ESA with the IRS is May 31 of the following year. However, Copy B must be furnished to the beneficiary by April 30.[2]
2027 Deadlines
- April 30, 2027 (beneficiary)
- May 31, 2027 (IRS)
Form Parts (9)
Box 1: Contributions
Enter the amount of contributions made to the Coverdell ESA, not including rollovers. Include any contributions that were designated for the calendar year but which were made by April 15 of the following year.[3]
Box 2: Rollover Contributions
Enter the amount of any rollover contributions made to the Coverdell ESA, including military death gratuities and trustee-to-trustee transfers from one Coverdell ESA to another.[4]
Identifying Information (16 Entries)
On the left side of Form 5498-ESA, a total of 16 boxes require information that identifies the trustee or issuer and the beneficiary, including:
- Trustee/Issuer information – name and full address, including country
- Trustee/Issuer TIN – taxpayer identification number
- Beneficiary’s TIN – normally an SSN/ITIN or EIN
- Beneficiary’s name – full name
- Beneficiary’s street address – number and street only, as well as apartment number
- Beneficiary’s remaining address – city/town, state/province, country, Zip/postal code
The beneficiary’s TIN must be entered in XXX-XX-XXXX (SSN or ITIN) or XX-XXXXXXX (EIN) format on Copy A of this form.[5]
Account Number
The account number field is generally provided for the trustee’s reference and for internal recordkeeping. It is required if there are multiple accounts for a recipient for whom you are filing more than one 5498-ESA.
The IRS encourages you to designate an account number for each 5498-ESA that you file. Note that the account number must be unique and cannot appear anywhere else on Form 5498-ESA.[6]
How to File
Form 5498-ESA can be filed online or with paper copies printed from the IRS website.
- Collect W-9s from each beneficiary
- Choose a filing method (online with IRIS, by mail, or with third-party software. If you are filing electronically, skip to step 5.)
- Complete Form 1096 along with Copy A if you are filing by mail
- Mail Form 1096 and Copy A to the appropriate IRS address
- Send Copy B to the beneficiary
- Retain Copy C for your records
Frequently Asked Questions
Do I need to report the information from 5498-ESA on my tax return?
The beneficiary generally does not need to report the information from Form 5498-ESA on their income tax return. However, they may owe a penalty if contributions to their account exceeded $2000 for the calendar year.[7]
Do I report distributions from a Coverdell ESA on Form 5498-ESA?
No, report distributions from a Coverdell ESA on Form 1099-Q.[8]
What counts as a qualified education expense?
Qualified education expenses generally include expenses for tuition, fees, books, supplies, and other supplementary items. They may also include expenses for room and board or for special needs services in the case of a special needs beneficiary.[9]