IRS Form 5498-QA Instructions
Complete Guide for ABLE Account Contributions

Form 5498-QA is used to report contributions, rollovers, and transfers made to an Achieving a Better Life Experience (ABLE) savings account during the tax year. This form is filed by the ABLE program (the issuer) and provided to the account’s designated beneficiary and the IRS. Beneficiaries use this form for informational purposes only and do not file it with their tax return.

What Is Form 5498-QA?

Each year, ABLE program administrators complete Form 5498-QA to report the total contributions made to an individual’s ABLE account, as well as any rollovers or program-to-program transfers. The form also shows the account’s fair market value (FMV) at year-end and identifies the basis of the beneficiary’s eligibility for the account.

Form 5498-QA helps the IRS and account holders ensure that contributions stay within the annual ABLE contribution limits set under section 529A of the Internal Revenue Code.

Who Receives Form 5498-QA?

Beneficiaries of ABLE savings accounts receive Copy B of Form 5498-QA from the program administrator. This copy is for your personal records and includes key details about contributions and account activity for the tax year.

Key Boxes Explained

• Box 1 – ABLE Contributions: Shows the total cash contributions made to your ABLE account in 2025, including rollovers from section 529 Qualified Tuition Programs (QTPs). These contributions are not deductible on your income tax return.

• Box 2 – ABLE to ABLE Rollovers: Reports rollovers or transfers made to this ABLE account from another ABLE account for the same beneficiary or a qualifying family member.

• Box 3 – Cumulative Contributions: May show the total contributed amount since the account was first opened, including transferred balances.

• Box 4 – Fair Market Value: May show the total contributed amount since the account was first opened, including transferred balances.

• Box 4 – Fair Market Value: May show the total contributed amount since the account was first opened, including transferred balances.

• Box 5 – Account Opened in 2025 This box is checked if the ABLE account was newly opened in the 2025 tax year.

• Box 6 – Basis of Eligibility: Identifies how the beneficiary qualifies for the ABLE program:
• A – Disability benefits under SSDI, Title II SSA
• B – SSI eligibility, Title XVI SSA
• C – Disability certification under section 529A(e)(1)(B)

• Box 7 – requires ABLE program administrators to enter one primary code that best describes the main disability for which the beneficiary qualifies for ABLE benefits. Choose the most significant condition if multiple apply. This helps the IRS track ABLE program usage by disability type.

Disability Code Breakdown

• Code 1 – Developmental Disorders
  Covers conditions like autism spectrum disorder, Asperger's syndrome, developmental delays, and learning disabilities that affect early childhood growth and skills.
• Code 2 – Intellectual Disability
  Includes mild, moderate, or severe intellectual disabilities that impact cognitive functioning and adaptive behaviors.
• Code 3 – Psychiatric Disorders
  Encompasses mental health conditions such as schizophrenia, major depression, PTSD, anorexia nervosa, ADHD, and bipolar disorder.
• Code 4 – Nervous System Disorders
  Reports neurological and sensory conditions including blindness, deafness, cerebral palsy, muscular dystrophy, spina bifida, multiple sclerosis, juvenile Huntington's disease, severe hearing loss, and congenital cataracts.
• Code 5 – Congenital Birth Defects
  Includes genetic conditions like Down syndrome, chromosomal abnormalities, osteogenesis imperfecta, spinal muscular atrophy, Fragile X syndrome, and Edwards syndrome.
• Code 6 – Respiratory Conditions
  Specifically covers cystic fibrosis and similar chronic lung diseases.
• Code 7 – All Other Disabilities
  Use for any condition not covered by codes 1-6, such as Tetralogy of Fallot, hypoplastic left heart syndrome, end-stage liver disease, juvenile rheumatoid arthritis, sickle cell disease, hemophilia, or other significant disabilities.

Important Contribution Limits

For 2025, the annual ABLE contribution limit is generally $19,000. Employed beneficiaries may be able to contribute additional earned income, subject to IRS limits under section 529A(b)(2)(B)(ii). If contributions exceed the allowable amount, the excess and related earnings must be withdrawn by the tax return due date to avoid penalties.

What to Do with Form 5498-QA

Form 5498-QA is for your records and is not filed with your federal tax return. Keep this document to help verify your ABLE account contributions and eligibility. It may also assist when monitoring limits or preparing future tax filings.

Where to Get More Information

For the most up-to-date instructions and reporting guidance, visit the IRS page for
Form 5498-QA. Refer to IRS Publication 907 for additional details on tax rules regarding disability-related savings.

Frequently Asked Questions (FAQs)

1. Who must submit Form 5498-QA to the IRS?

The responsibility to file Form 5498-QA lies with the state or its authorized agency that manages the ABLE savings program. This form must be filed by June 1st of the year following the tax year reported.

2. What is the electronic filing requirement for Form 5498-QA?

If you have 10 or more ABLE accounts to report, you are required to submit Form 5498-QA electronically to the IRS. This requirement helps streamline filing and ensures timely processing.

3. Is there an electronic fillable version of Form 5498-QA available?

Yes, the IRS provides an online fillable PDF version for smaller filers to prepare and distribute statements, but bulk filings to the IRS must comply with the mandatory e-filing thresholds.

4. How should errors or corrections on Form 5498-QA be handled?

If any mistakes are found after filing, corrected forms must be submitted as soon as possible to maintain accurate records with the IRS. Guidelines are included in the IRS General Instructions for Information Returns.

5. Are waivers available for e-filing Form 5498-QA?

Filers who face exceptional difficulty in e-filing may apply for a waiver, but such exceptions are rarely approved as the IRS strongly encourages electronic submissions.

6. What software options exist for filing Form 5498-QA electronically?

Several IRS-approved tax information reporting software solutions support Form 5498-QA
e-filing, allowing program administrators to efficiently prepare, review, and transmit files to the IRS.