Form 5498-SA is a key IRS document used to report contributions to Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs. These accounts offer tax advantages to eligible individuals who want to save for medical expenses. Trustees or custodians of these accounts are required to send Form 5498-SA both to the account holder and the IRS by May 31 each year, covering contributions made for the previous tax year, including those made through the tax filing deadline on April 15.
Understanding the Accounts Covered by Form 5498-SA
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Health Savings Account (HSA): An HSA is a tax-favored savings vehicle available to individuals enrolled in high-deductible health plans (HDHPs). Contributions to an HSA are typically tax-deductible, the account grows tax-free, and withdrawals for qualified medical expenses are tax-exempt. For more on HSAs, see our Health Savings Account overview.
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Archer Medical Savings Account (MSA): These are older accounts primarily for self-employed individuals and small businesses, largely replaced by HSAs but still valid if established before HSAs were introduced. They follow specific IRS rules and contribution limits. For details, refer to our Archer Medical Savings Account (MSA).
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Medicare Advantage Medical Savings Account (Medicare Advantage MSA): These accounts are linked to Medicare Advantage plans combined with an MSA, designed for specific Medicare beneficiaries.
What Information Does Form 5498-SA Report?
Form 5498-SA is issued by the financial institution that manages your HSA or MSA. It reports several important details:
- Total Contributions (Box 1): This includes all deposits made during the tax year, including employee and employer contributions.
- Archer MSA Contributions (Box 2): Specific to Archer MSAs.
- Medicare Advantage MSA Contributions (Box 3): For Medicare Advantage MSAs.
- Rollover Contributions (Box 4): Funds rolled over from another compatible account.
- Fair Market Value (Box 5): The account balance as of December 31 of the tax year.
Though Form 5498-SA is informational and not filed with your tax return, you use the data it reports to accurately complete IRS Form 8889 for HSAs or the corresponding forms for MSAs. This helps ensure your reported contributions are accurate and helps avoid IRS inquiries.
Timing and Distribution of Form 5498-SA
Financial institutions must send Form 5498-SA to both the IRS and account holders by May 31. This timing accommodates contributions made after the calendar year but on or before the tax filing deadline (April 15), which can still be counted for the previous tax year.
If you do not receive Form 5498-SA by early June, contact your account provider to request it.
Importance of Form 5498-SA
- IRS Verification: The form helps the IRS verify the contributions you report during tax filing for your HSA or MSA.
- Accurate Tax Filing: Using this form ensures your tax return reflects correct contributions, especially since HSAs and MSAs have annual contribution limits established by the IRS.
- Contribution Tracking: It is a useful record to track your total yearly medical savings contributions and avoid excess contributions, which can result in penalties. Read more about excess contributions in our article on Health Savings Account (HSA) Excess Contributions.
Tips for Managing Form 5498-SA
- Store your Form 5498-SA with your tax documents for at least three years.
- Compare the reported contribution amount on Form 5498-SA with what you include on your tax forms to prevent errors.
- Remember contributions made between January 1 and April 15 are reported on the following year’s Form 5498-SA.
Common Misunderstandings
- Form 5498-SA is not a tax return and does not require filing with your return.
- Contributions made after December 31 but before the tax filing deadline count toward the previous tax year and will be reflected on next year’s form.
- Differences between your tax return figures and Form 5498-SA can trigger IRS follow-ups.
Frequently Asked Questions
Can I receive Form 5498-SA electronically? Yes, many institutions offer electronic delivery if you consent.
What if I don’t receive Form 5498-SA? Contact your financial institution promptly, as missing this form may complicate your tax filing.
Does Form 5498-SA report HSA or MSA distributions? No, distributions are reported separately on Form 1099-SA. See our guide on Form 1099-SA – Distributions from an HSA, Archer MSA, or Medicare Advantage MSA.
Do employer contributions appear on Form 5498-SA? Yes, all contributions including employer deposits are included.
Summary Table: Understanding Form 5498-SA Boxes
| Box Number | Description | Notes |
|---|---|---|
| Box 1 | Total contributions | Includes employee and employer deposits |
| Box 2 | Archer MSA contributions | Only if you have an Archer MSA |
| Box 3 | Medicare Advantage MSA contributions | For Medicare Advantage MSA participants |
| Box 4 | Rollover contributions | Funds transferred from other accounts |
| Box 5 | Fair market value of account | Account balance as of December 31 |
For authoritative information, refer to the IRS page on Form 5498-SA and IRS Publication 969.
Form 5498-SA provides an essential annual summary of your health-related tax-advantaged savings, helping you and the IRS verify contributions and accurately report them on your tax return.