What Are Forms 1099-SA and 5498-SA?

Sovos
April 19, 2018

Form 1099-SA, Distributions From a Health Savings Account (HSA), Archer Medical Savings Account (MSA) or Medicare Advantage MSA, and Form 5498-SA, HSA, Archer MSA or Medicare Advantage (MA) MSA Information, are tax information reporting documents related to health savings accounts. These forms are tied together because Form 1099-SA is used to report distributions to an account, and Form 5498-SA is designated for reporting contributions.

The forms are noted on the same set of instructions with specific details for each. Here is an overview of the reporting requirements for each form:

Form 1099-SA

This document is to be completed by the entity making the distribution. Reporting is to occur for each type of account, and the requirement applies whether the entity paid the funds to the account holder or directly to the medical service provider. Additionally, distributions must be reported if an HSA is closed and the account holder didn’t meet the requirements of the Customer Identification Program under the USA Patriot Act.

The IRS does have one exception that applies to transfers.

“Do not report a trustee-to-trustee transfer from one Archer MSA or MA MSA to another Archer MSA or MA MSA, one Archer MSA to an HSA, or from one HSA to another HSA,” the form instructions read. “For reporting purposes, contributions and rollovers do not include transfers.”

The IRS also has special provisions in the event an account holder dies. Typically, spouses become the account holder, and if the account is an MA MSA, it becomes an Archer MSA and is subject to the appropriate rules.

If the account lacks a designated beneficiary or the holder’s spouse is not the beneficiary, the account is no longer treated as a savings account. Instead, the fair market value is reported on Form 1099-SA and allocated to the appropriate recipients.

Issuers must submit this form to the IRS by Feb. 28 and to recipients by Jan. 31.

Form 5498-SA

Contributions to any of the aforementioned savings plans are detailed on this form by trustees or custodians, and a separate form is required for each type of account. The same transfer rules apply to Form 5498-SA, but rollovers are not exempt from reporting. One instance when reporting isn’t required is if a total distribution occurs during the year but no contributions are made.

The same provisions apply regarding the death of an account holder.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
Share this post

North America Tax Information Reporting
March 22, 2024
Market Conduct Annual Statement Reminders and More

On the second Wednesday of each month, Sovos experts host a 30-minute webinar, Water Cooler Wednesday, to share the latest updates on statutory filings. In March, Sarah Stubbs shared information about the many filings due after March 1, from Market Conduct Annual Statements to health supplements for P&C and life insurers writing A&H businesses and […]

North America ShipCompliant
March 21, 2024
How Producers Can Build a DtC Shipping Market

Direct-to-consumer (DtC) shipping has become one of the leading sales models for businesses of all sizes and in all markets. The idea of connecting directly with consumers is notably attractive, as it helps brands develop a personal relationship and avoid costly distribution chains. Yet, for all its popularity, DtC is often a hard concept to […]

North America ShipCompliant
March 20, 2024
Key Findings from the 2024 DtC Beer Shipping Report

This March, Sovos ShipCompliant released the fourth annual Direct-to-Consumer Beer Shipping Report in partnership with the Brewers Association. The DtC beer shipping report features exclusive insights on the regulatory state of the direct-to-consumer (DtC) channel, Brewers Association’s perspective and key data from a consumer preferences survey. Let’s take a deeper dive into some of the […]

March 20, 2024
As the World Gets Smaller, Think Bigger About Global Tax Compliance

For the past few weeks back, my colleagues and I have been talking a lot about the importance of a global strategy when it comes to addressing today’s modern tax environments. On the heels of Sovos introducing the Sovos Compliance Cloud, many in our company’s leadership team have blogged about related topics and the critical […]

North America ShipCompliant
March 12, 2024
Florida HR 583 Set to Uncork Larger Format Wine Bottles

This bill was signed into law on March 28, 2024 and takes effect July 1, 2024. Florida wine lovers could soon enjoy a bigger selection of bottles based on a recent bill passed by the state’s legislature (HR 583) that would remove the existing cap on wine bottle sizes. What is Florida’s HR 583 bill? […]