Instructions For Forms 1099-Sa And 5498-Sa - 2006

ADVERTISEMENT

Instructions for Recipient
return the FMV of the account as of the date of death. Report the FMV on your
tax return for the year the account owner died even if you received the
Distributions from a health savings account (HSA), Archer MSA, or Medicare
distribution from the account in a later year. See the Instructions for Form
Advantage (MA) MSA are reported to you on Form 1099-SA. File Form 8853,
8853 or Form 8889. Any earnings on the account after the date of death (box
Archer MSAs and Long-Term Care Insurance Contracts, or Form 8889, Health
1 minus box 4 of Form 1099-SA) are taxable. In the case of an HSA, the
Savings Accounts (HSAs), with your Form 1040 to report a distribution from
amount included on your tax return (other than an estate) is first reduced by
these accounts even if the distribution is not taxable. The payer is not required
any payments from the HSA made for the decedent’s qualified medical
to compute the taxable amount of any distribution.
expenses incurred before the decedent’s death and paid within one year after
An HSA or Archer MSA distribution is not taxable if you used it to pay
the date of death.
qualified medical expenses of the account holder and family or you rolled it
Account number. May show an account or other unique number the payer
over. An HSA may be rolled over to another HSA; an Archer MSA may be
assigned to distinguish your account.
rolled over to another Archer MSA or an HSA. An MA MSA is not taxable if
Box 1. Shows the amount received this year. The amount may have been a
you used it to pay qualified medical expenses of the account holder only. If
direct payment to the medical service provider or distributed to you.
you did not use the distribution from an HSA, Archer MSA, or MA MSA to pay
Box 2. Shows the earnings on any excess contributions you withdrew from an
for qualified medical expenses, or in the case of an HSA or Archer MSA, you
HSA or Archer MSA by the due date of your income tax return. If you withdrew
did not roll it over, you must include the distribution in your income (see Form
the excess, plus any earnings, by the due date of your income tax return, you
8889 or Form 8853). Also, you may owe a penalty.
must include the earnings in your income in the year you received the
For more information, see the separate instructions for Form 8853 and Form
distribution even if you used it to pay qualified medical expenses. This amount
8889. Also see Pub. 969, Health Savings Accounts and Other Tax-Favored
is included in box 1. An excise tax of 6% for each taxable year is imposed on
Health Plans.
you for excess individual and employer contributions that remain in the
Spouse beneficiary. If you inherited an Archer MSA or MA MSA because of
account. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs)
the death of your spouse, special rules apply. See Instructions for Form 8853.
and Other Tax-Favored Accounts.
If you inherited an HSA because of the death of your spouse, see the
Box 3. These codes identify the distribution you received: 1—Normal
Instructions for Form 8889.
distribution; 2—Excess contributions; 3—Disability; 4—Death distribution other
Estate beneficiary. If the HSA, Archer MSA, or MA MSA account holder dies
than code 6; 5—Prohibited transaction; 6—Death distribution after year of
and the estate is the beneficiary, the fair market value (FMV) of the account on
death to a nonspouse beneficiary.
the date of death is includible in the account holder’s gross income. Report
Box 4. If the account holder died, shows the FMV of the account on the date
the amount on the account holder’s final income tax return.
of death.
Nonspouse beneficiary. If you inherited the HSA, Archer MSA, or MA MSA from
Box 5. Shows the type of account that is reported on this Form 1099-SA.
someone who was not your spouse, you must report as income on your tax

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial