Form 1099-SA
Form 1099-SA is a U.S. IRS tax form that reports withdrawals, also known as distributions, from a Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage MSA. The form is sent by the HSA trustee or custodian to the IRS and the account holder. This form helps taxpayers determine whether the distributions are taxable or not.
Last updated: July 23, 2023 • 2 min read
What Is Form 1099-SA?
Form 1099-SA is a U.S. Internal Revenue Service (IRS) form that provides the details of distributions taken from a Health Savings Account (HSA), Archer Medical Savings Account (Archer MSA), or Medicare Advantage MSA (MA MSA). The form is issued by the trustee or custodian of the account and is used by the account holder to determine whether any of the distributed funds need to be reported as taxable income.
What's the Difference Between Form 1099-SA and Form 5498-Sa?
Form 1099-SA is used to report any distributions or withdrawals from a Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage MSA.
On the other hand, Form 5498-SA is used to report any contributions made to these accounts. It documents the inflow of funds into the accounts, whereas Form 1099-SA documents the outflow or use of these funds.
What Are Some Examples of Form 5498-Sa?
"Examples" in this case may not refer to specific scenarios but rather to the types of information reported on Form 5498-SA. Here are the categories of information that are typically reported:
- Contributions made by the individual to their HSA during the tax year.
- Employer contributions to an employee's HSA.
- Contributions made to the individual's Archer MSA.
- Rollover contributions (if any) from another HSA or MSA into the HSA.
- FMV (Fair Market Value) of the account.
- Contributions made by the individual to their Medicare Advantage MSA.
Please note that contribution limits and the tax treatment of these contributions can vary based on a variety of factors, including the individual's age, health plan coverage, and the type of MSA. Therefore, it's crucial to consult with a tax professional when preparing and submitting these forms.
Which Employers Are Most Likely Impacted by the Distribution Reporting of Form 1099-Sa?
Employers who offer Health Savings Accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), or Medicare Advantage MSAs to their employees would be most impacted by the distribution reporting of Form 1099-SA. This is because these employers, or the financial institutions they partner with, are responsible for providing this form to report any distributions from these accounts.