What Is Form 5498-SA?
Form 5498-SA is a report of contributions to a Health Savings Account (HSA), Archer Medical Savings Account, or Medicare Advantage Medical Savings Account sent by the account manager, or trustee, to their respective account holders. In a typical employment scenario, every employee who is enrolled in an HSA-based healthcare plan should receive a 5498-SA from the bank or provider that manages their HSA account. The form will show the employee’s HSA contributions for the previous year along with any contributions made by the employer or other parties.
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Do I Have to (Or Should I) Report My HSA Contributions?
Form 5498-SA is not required in order to file a tax return. It may be useful as a source of information for account holders wishing 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 are usually already tax-free. If you did not make after-tax contributions to such an account, you do not need to report those contributions in order to receive your maximum tax refund.
Do I Need to Report the Money I Used or Received From an HSA?
Generally speaking, if the money was used (distributed) for qualified medical purposes or to roll over into another tax-free HSA or medical savings account, you would not 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, that is considered income and must be reported via Form 1099-SA.