Several IRS forms and documents that taxpayers receive and complete must be attached to their tax return. But some of them are for informational purposes only. This type of paper includes Form 5498-SA.
If you have a Health Savings Account (HSA), Medicare Advantage Medical Savings Account (MA MSA), or Archer Medical Savings Account (MSA), your trustee or account manager will send you this document.
Below we will figure out what kind of paper it is, why and who sends it, how to read the report and how to use it further.
This document displays data about the contributions credited to your MSA, MA MSA, or HSA during the tax year.
This document does not need to be attached to your tax return. You need the information reflected in the document to file another form — 8889 (which is filed to the Revenue Service). You can use our form-building software to complete this document.
You should receive the form by the end of January to 31st May. The paper is to be completed by the provider or bank where your account is located.
As most HSA contributions are transferred from your paychecks before federal income taxes are taken out, they are usually already tax-free.
You can also get a seemingly similar document, Form 1099-SA. Their difference is that:
So, you will receive a completed form, and you do not need to add anything to it. Nevertheless, we will tell you what information is reflected in this paper.
The form consists of three copies, each of which is sent to its addressee:
In the upper left corner, you will find information about the Trustee who generated this document:
Next, you will see your data:
Please check carefully that you have received the correct form, completed in your name. We also draw your attention to the fact that you will receive a separate form for each of your accounts (if you have several ones).
These sections contain different amounts of contributions, namely:
You need the information in Box 2 and 3 just for review, but you can probably use the data from Box 1 when filling out Forms 1040 or 1040-SR.
Boxes 4 and 5
In Box 5, you will see the fair market value of your accounts in 2021.
Box 4 will give you information if there were any rollover contributions. It is important to note that these amounts are not included in the first 3 Boxes.
The Type of the Account
Since a separate form must be filled out for each account, in Box 6, there will be a checkmark next to the appropriate type.
Do not lose your Form. Although you do not need to attach it to the rest of your tax return documents, you should keep the document in a safe place. Some forms require you to indicate the information provided in it.