Form 5498-SA

What is Form 5498-SA?

Form 5498-SA reports annual contributions to an Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA. It's sent by the account trustee to the account holder and includes both employee and employer contributions.

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Is Form 5498 needed for taxes?

Form 5498-SA isn’t required to file a tax return. But it may be useful as a source of information for account holders who want to claim their contributions as a tax deduction.

However, since most HSA contributions are taken out of an employee’s paycheck before federal income taxes are taken out, they’re usually already tax-free. If you didn’t make after-tax contributions to such an account, you don’t need to report those contributions to receive your maximum tax refund.

When do I need Form 5498-SA?

You will need Form 5498-SA when reporting:

These are for completing taxes or verifying annual contributions.

Do I need to report the money I used or received from an HSA?

If the money was used (distributed) for qualified medical purposes or to roll over into another tax-free HSA or medical savings account, you wouldn’t need to report that information on your income tax return.

If you inherited money from such an account or you used money from such an account for non-qualified expenses, it’s considered income and needs reporting via Form 1099-SA.

Form 1099-SA vs. 5498-SA

Here we’ve broken down the 1099-SA vs 5498-SA forms and what is needed for each. The IRS website can provide further details and guidance on Form 1099-SA and Form 5498-SA should you need it.

Feature
Form 1099-SA
Form 5498-SA
Purpose
Reports distributions (withdrawals) from HSA, MSA accounts
Reports contributions to HSA, MSA accounts
Who Sends It
HSA/MSA trustee or custodian
HSA/MSA trustee or custodian
Who Receives It
Taxpayer/account holder
Taxpayer/account holder
IRS Use
To verify if withdrawals were qualified medical expenses
To verify contribution limits and eligibility
Tax Filing Relevance
Required to complete Form 8889, Line 14a
Used to verify contribution totals when preparing Form 8889; not required to be filed with the tax return
When It's Issued
By January 31 following the tax year
By June 1 for each person who maintained a health savings account (HSA), Archer medical savings account (Archer MSA), or Medicare Advantage MSA (MA MSA)
Shows
Total distributions, purpose of withdrawal, earnings
Total contributions, including employer contributions

Form 5498-SA Instructions

Form 1099-SA is used to report money taken out of an HSA, Archer MSA, or Medicare Advantage MSA. This includes payments made to a medical provider or directly to the account holder. You need a different form for each type of account. For more detailed guidance, refer to the IRS instructions.

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