A Helpful Guide to Form 5498-SA for Health Savings Accounts
If you have a Health Savings Account, you may receive a copy of Form 5498 from your bank or financial institution each year. This is an important form to review and keep for your records. Whether you are an account participant or responsible for completing this form, here is a rundown to help you better understand it.
What is Form 5498-SA?
The Form 5498-SA is a form designed by the IRS to report contributions to certain health savings plans. In addition to contributions rollovers of these accounts should be reported and certain types of transfers.
Who must file Form 5498-SA?
Trustees of these health savings accounts are required to file Form 5498-SA with the IRS each year to report the actions made to the account throughout the tax year. In addition to filing with the IRS, the trustee should also distribute a copy of the Form 5498-SA to each account participant by mail. In the case that an account holder has passed away, the trustee should distribute this form to their decadent.
Trustees of these health savings plans are generally banks and other financial institutions.
Which Health Savings Accounts are reported on this form?
There are three types of accounts that are reported on the 5498-SA Form.
First is the Health Savings Account, more commonly referred to as an HSA. This is an account that helps individuals save for medical expenses. Individuals must qualify for an HSA, those who are on a high-deductible health insurance plan generally qualify. There are certain tax advantages to maintaining an HSA.
Next is the Archer Medical Savings Account. This savings account was ideal for the self-employed or employer with 50 or less employees. These plans are no longer issued, but many are still in existence. Much like the more modern HSA, this type of account also offers tax advantages.
Last is the Medicare Advantage MSA, or MA MSA. This combines a high-deductible Medicare health insurance plan with a health savings account that allows the individual to save for medical expenses.
When is Form 5498-SA due?
The deadline to file this form is usually May 31, however the IRS has extended the deadline for tax year 2020. The deadline for filing the 5498-SA to the IRS and distributing recipient copies to account holders is June 30, 2021.
Filing options for Form 5498-SA
Trustees that are required to file Form 5498-SA have two different filing options to choose from. They can either mail a paper copy to the IRS or file electronically. The IRS prefers e-filing over paper filing and the benefits will most likely make this your preferred method as well.
When e-filing, the IRS is able to quickly process your forms and update you on their status. With an IRS authorized e-file provider like TaxBandits you can also feel confident in the accuracy of your forms, our application has built-in error checks that audit your information against the IRS business rules.
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