Health Savings Accounts
Are contributions to and distributions from an HSA reported to the IRS?
Yes. The bank will report all distributions on Form 1099-SA and contributions and year-end account value on Form 5498-SA. In addition, employers must report employer HSA contributions (including employee HSA contributions made through a cafeteria plan) on an employee’s Form W-2. Account holders must file Form 8889 with their tax return to report the amount of distributions used for qualified medical expenses. Participants should be advised to keep receipts and records to prove the expenses were incurred and were not paid for or reimbursed by another source or taken as an itemized deduction.
View additional questions:
- What is a Health Savings Account (HSA)?
- How do employees qualify to open an HSA?
- When can contributions be made to an HSA?
- Can employer's still offer their regular Health Care Flexible Spending Account (HCFSA) Plan to HSA participants?
- Do employers have to amend the Cafeteria Plan to allow for pre-tax contributions to the HSA?
- How much can be contributed to an HSA?
- Can money be rolled over from an employee's Health Flexible Spending Account (HCFSA) or Healthcare Reimbursement Account (HRA) into an HSA?
- Can a participant transfer money from his or her Individual Retirement Account (IRA) into an HSA?
- Who can contribute to an HSA?
- What can the participant use the HSA money for?
- How are withdrawals from an HSA treated if they are not used for qualified medical expenses?
- Are contributions to and distributions from an HSA reported to the IRS?