Form 5498 reports your total annual contributions to an IRA account and identifies the type of retirement account you have, such as a traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA. Form 5498 will also report amounts that you roll over or transfer from other types of retirement accounts into this IRA.
The 5498-SA tax form is used to report contributions to a health savings account (HSA). It is for informational purposes and is not required to file a tax return.
If you need Form 5498, your trustee must send it to you by May 31. You should not submit Form 5498 along with your income tax return. The IRS will receive its own copy of the form from your IRA trustee. The copy you receive in the mail is yours to keep.
You will receive the IRS Form 1099-SA and IRS Form 5498-SA either by mail or electronically (based upon your elected delivery preference). These IRS tax forms are also available in the Member Website. IRS Form 1099-SA is provided for each HSA distribution you made in the current tax year.
Form 5498-SA shows the amount contributed during the year for any HSA, Archer MSA, or Medicare Advantage MSA. In addition to being included on Form 5498-SA, employer contributions will also be shown on Form W-2, box 12, with code W. Contributions made by an employer are not included in the income of the taxpayer.
Where do I enter my 1099-SA? ? Medicare Advantage (MA) MSA. File Form 8889 or Form 8853 with your Form 1040 or 1040-SR to report a distribution from these accounts even if the distribution isn't taxable. The payer isn't required to compute the taxable amount of any distribution.
IRS form 1099-SA shows the amount of money you spent from your HSA during the tax year. IRS form 5498-SA shows the amount of money deposited into your HSA for the tax year. IRS form 8889 is the form you fill out and submit with your tax return.
IRS Form 8889 is used to report HSA contributions, distributions and your tax deductions. You will complete this form using IRS Forms 1099-SA and 5498-SA provided by HSA Bank.
Where do I enter Form 5498-SA? Form 5498-SA reports contributions to your Health Savings Account (HSA), Archer MSA, or Medicare Advantage MSA. You don't enter this form into TurboTax; your account custodian sends it to you for informational purposes only. We recommend that you keep it with your tax return records.
Health savings accounts show up on your Form W-2 in Box 12 using code “W,” which covers all employer contributions to an employee's HSA.
File Form 8889 to:
- Report health savings account (HSA) contributions (including those made on your behalf and employer contributions).
- Figure your HSA deduction.
- Report distributions from HSAs.
- Figure amounts you must include in income and additional tax you may owe if you fail to be an eligible individual.
You must report all employer contributions (including an employee's contributions through a cafeteria plan) to an HSA in box 12 of Form W-2 with code W. Employer contributions to an HSA that are not excludable from the income of the employee also must be reported in boxes 1, 3, and 5.
HSA distributions
The IRS requires you to prepare Form 8889 and attach it to your tax return when you take a distribution from an HSA. However, if your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses.Contributions to your HSA reduce your taxable income as the contributions show up as deductions on line 25 - "Health savings account deduction" - of your Form 1040 in calculating your taxable income. Any amount you take out of your HSA and use for qualified medical expenses are also tax free to you.
When you contribute money to an HSA, it decreases your adjusted gross income (AGI) which determines your taxable income. Since the U.S. runs on a tax rate system based on your income, the lower your AGI, the lower your tax bill.
Distributions from an HSA are reported to the taxpayer on Form 1099-SA, Distributions from an HSA, Archer MSA, or Medicare Advantage MSA. Form 1099-SA, box 5, will indicate whether the distribution is from an HSA, Archer MSA, or a Medicare Advantage MSA.
Report all contributions (employee, employer, and other third-party contributions) to your Fidelity HSA on IRS Form 8889, “Health Savings Accounts (HSAs),” and file it with your IRS Form 1040. You should include all contributions made for 2019, including those made by the tax-filing deadline.
Important: If you pay for a qualifying medical expense from an HSA, you can't also claim the expense as a medical deduction on your return. If you use your HSA to purchase a non-qualifying medical expense, you'll be subject to a 20% penalty unless you become disabled, are 65 years or older, or die.
If you or anyone other than your employer deposited money into your HSA, you should receive Form 5498 showing how much was deposited. When you have the total contributions for the year, fill out our Form 8889 screen on your your 1040.com return.
If your employer made HSA contributions or you did through payroll deduction, then this total appears with a code of 'W' in box 12 on your W-2. This means that there is no deduction for the code W amount, because it was never in your income in the first place.
If no, then you won't be sent a 1099-SA and you won't need to enter it. If yes, the the HSA administrator is required to send you a 1099-SA. Otherwise, call the HSA administrator and ask for your 1099-SA. The 1099-SA is what is reported to the IRS, so we want that whatever use you match what the IRS has received.
You receive a 1099-SA form if you must report distributions from health savings, medical savings, and Medicare Advantage accounts. You can repay a mistaken distribution from a health savings account no later than April 15. If you inherited an account from your deceased spouse, special rules apply.
Like any health care option, HSAs have advantages and disadvantages. If you're generally healthy and want to save for future health care expenses, an HSA may be an attractive choice. Or if you're near retirement, an HSA may make sense because the money can be used to offset the costs of medical care after retirement.
You will receive the IRS Form 1099-SA and IRS Form 5498-SA either by mail or electronically (based upon your elected delivery preference). These IRS tax forms are also available in the Member Website. IRS Form 1099-SA is provided for each HSA distribution you made in the current tax year.
How Much Can I Contribute to a HSA? The IRS sets limits that determine the combined amount that you, your employer, and any other person can contribute to your HSA each year. For 2020, the maximum contribution amounts are $3,550 for individual coverage and $7,100 for family coverage.
The 5498-SA tax form is used to report contributions to a health savings account (HSA). It is for informational purposes and is not required to file a tax return.
Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. Withdrawals to pay qualified medical expenses, including dental and vision, are never taxed. Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
Tax-Deductible Contributions
With an HSA, you're allowed to write-off the money you contribute for the year. For tax year 2019, the contribution limits are set at $3,500 if you have individual coverage and $7,000 for families. You can kick in an extra $1,000 if you're age 55 or older.
