What role does the IRA custodian play?
Custodian handles recordkeeping and IRS reporting including Forms 1099 and 5498.
The IRS requires that IRA assets be held by a qualified custodian; an individual may not act as an IRA custodian. The custodian is responsible for all recordkeeping and IRS reporting, including tracking contributions, rollovers, transfers, and distributions. They provide two required annual IRS filings: Form 1099 showing distributions and Form 5498 showing contributions and Fair Market Value.