Several IRS forms track different parts of your IRA activity — this article maps out which forms exist, what each one reports, and whether Digital Trust (as custodian) or you (as the account holder) is the one who files it.

Reporting on a Self-Directed IRA (SDIRA) is split between two parties: Digital Trust, our custodian, files the forms that document custodial-level activity — contributions received, fair market value, and distributions paid out. You, the account holder, file the forms that depend on information only you have — your own tax basis, whether a contribution was deductible, and whether an investment generated unrelated business income. Neither party files the other's forms; missing either half of the picture creates an incomplete record with the IRS.

Form 5498, "IRA Contribution Information," is filed by Digital Trust to report the contributions made to your IRA during the year and the account's fair market valuation (FMV) as of December 31. Digital Trust sends a copy to both you and the IRS. You don't need to do anything to trigger this filing — it happens automatically based on your account's recorded activity. See "What is Fair Market Valuation (FMV) and why it matters" for how the FMV figure on this form is determined and why it needs to be accurate.

Form 5498 is informational — it doesn't require you to take any action, but it's worth checking that the contribution and FMV figures match your own records, since it's the IRS's primary record of what went into your account.

Form 1099-R, "Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.," is filed by Digital Trust whenever a distribution or a Roth conversion moves money out of your IRA. It reports the gross amount distributed and a distribution code that tells the IRS (and you) how the distribution should be taxed — for example, a normal distribution, an early distribution, or a conversion.

You'll use the figures on Form 1099-R when you file your own tax return for the year, but Digital Trust generates and files the form itself based on the transaction.

Form 8606, "Nondeductible IRAs," is the one major IRA-related form that you file yourself, not Digital Trust. It reports non-deductible Traditional IRA contributions, tracks your cumulative basis (after-tax money in a Traditional IRA), and reports Roth conversions. Digital Trust has no visibility into whether your Traditional IRA contribution was deductible or not — that depends on your income, tax filing status, and whether you or a spouse is covered by a workplace plan, none of which the custodian tracks. Only you (or your tax preparer) have that information, which is why this form is your responsibility.

Form 8606 matters most when you make non-deductible contributions or execute conversions, including a backdoor Roth — see "Backdoor Roth contributions and conversions" for how missing or incomplete Form 8606 filings can turn an otherwise clean strategy into an avoidable tax problem. Without an accurate Form 8606 history, the IRS has no record that any of your Traditional IRA balance was already taxed, and may treat a future distribution as fully taxable even when part of it should come out tax-free.

Form 990-T, "Exempt Organization Business Income Tax Return," applies only when your IRA generates more than $1,000 of unrelated business taxable income in a year — most often from an operating business held through a pass-through entity, or from debt-financed property. Digital Trust can facilitate this filing using funds from within the IRA, but identifying that a filing is required, and supplying the underlying tax information (such as a Schedule K-1), is the account holder's responsibility. See "UBIT and UDFI — when your IRA owes taxes" for the full explanation of when this applies.

If you're not sure whether a form applies to your situation for a given tax year, contact the Service Team, or see "How Digital Trust reports to the IRS on your behalf" for more on what Digital Trust reports automatically.

Will Digital Trust send me copies of the forms it files?
Yes. Digital Trust sends you a copy of any Form 5498 or Form 1099-R filed on your account, the same copies it sends to the IRS.

Do I need to file Form 8606 every year?
Only in years when it applies — when you make a non-deductible contribution, take a distribution from a Traditional IRA that has basis, or complete a Roth conversion. In a year with none of those events, no Form 8606 is required.

What happens if I forget to file Form 8606 in a year it was required?
It's correctable, but it can complicate your basis tracking going forward. We recommend consulting a tax advisor or attorney for guidance specific to your situation if you think a past Form 8606 was missed or filed incorrectly.

Does Retired.com prepare my personal tax return?
No. Retired.com is the platform, and Digital Trust is the custodian — neither prepares personal tax returns or provides tax advice. Form 8606 and your personal return are your responsibility, typically with a tax preparer's help.

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