Form 5498-SA
Form 5498-SA is a United States Internal Revenue Service form that is used to report the contributions made to health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), or Medicare Advantage MSA. The financial institution that administers the account sends the form to the IRS and the account holder. It helps the account holder to track the contributions that should be reported on their tax return.
Last updated: July 23, 2023 • 2 min read
What Is Form 5498-SA?
Form 5498-SA is a U.S. Internal Revenue Service (IRS) tax form sent by the trustees or issuers of specified types of accounts to various recipients, typically the owners of these accounts. This form reports contributions made to HSA (health savings account), Archer MSA (medical savings account), or Medicare Advantage MSA. The IRS uses the information on the form to check on the individual's compliance with contribution rules for these tax-advantaged accounts.
What's the Difference Between Form 5498-SA and Form 1099-Sa?
Form 5498-SA and Form 1099-SA are related tax forms that deal with contributions to and distributions from HSA (Health Savings Account), Archer MSA (Medical Savings Account), or Medicare Advantage MSA.
Form 5498-SA, as already defined, reports the contributions made to these accounts. Form 5498-SA helps the IRS determine if a taxpayer has over-contributed to the account (which may result in penalties) and is generally sent by the trustee or custodian of the account.
On the other hand, Form 1099-SA reports distributions (withdrawals) from these accounts. It indicates the total amount of distributions taken from the account, which can include medical expenses and other non-medical withdrawals. This form helps the IRS evaluate whether the distributions made are taxable.
In summary, while Form 5498-SA tracks the money going into these tax-advantaged accounts, Form 1099-SA tracks the money coming out.
What Are Some Examples of HSA Contributions?
HSA (Health Saving Account) contributions refer to the money that is put into an HSA. The contributions can be made by both the account holder and their employer. Here are a few examples of HSA contributions:
Pre-Tax Contributions: Directly deposited into the HSA by the account holder's employer before taxes are deducted from the paycheck.
After-Tax Contributions: Deposited by the account holder themselves after taxes have been deducted from their paycheck. These contributions can be deducted from their income on their federal tax return.
Rollover Contributions: Funds rolled over from another HSA or Medical Savings Account (MSA) to a new HSA.
Transfer Contributions: Similar to rollovers, a transfer contribution occurs when funds are moved from one HSA account to another. Unlike a rollover, however, transfer contributions can happen more than once a year.
Employer Contributions: Funds that an employer directly deposits into the HSA on behalf of the employee.
Remember that the annual contribution limits for HSAs are regulated by the IRS. For 2022, it's $3,650 for those with self-only coverage and $7,300 for those with family coverage.