Instructions For Forms 1099-Sa And 5498-Sa - 2018

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1099-SA and 5498-SA
Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, and HSA,
Archer MSA, or Medicare Advantage MSA Information
Section references are to the Internal Revenue Code unless
mistake. For example, the account beneficiary reasonably, but
otherwise noted.
mistakenly, believed that an expense was a qualified medical
expense and was reimbursed for that expense from the HSA. The
Future Developments
account beneficiary then repays the mistaken distribution to the
HSA.
For the latest information about developments related to Forms
Under these circumstances, the mistaken distribution is not
1099-SA and 5498-SA and their instructions, such as legislation
included in gross income, is not subject to the additional 20% tax,
enacted after they were published, go to
IRS.gov/Form1099SA
and
and the repayment is not subject to the excise tax on excess
IRS.gov/Form5498SA.
contributions. Do not treat the repayment as a contribution on Form
Reminders
5498-SA, HSA, Archer MSA, or Medicare Advantage MSA
Information.
General instructions. In addition to these specific instructions, you
As the trustee or custodian, you do not have to allow
should also use the 2018 General Instructions for Certain
beneficiaries to return a mistaken distribution to the HSA.
Information Returns. Those general instructions include information
TIP
However, if you do allow the return of the mistaken
about the following topics.
distribution, you may rely on the account beneficiary's statement that
Who must file (nominee/middleman).
the distribution was in fact a mistake. See Notice 2004-50, 2004-33
When and where to file.
I.R.B. 196, Q/A-76, available at IRS.gov/irb/2004-33_IRB/ar08.html.
Electronic reporting requirements.
Do not report the mistaken distribution on Form 1099-SA. Correct
Corrected and void returns.
any filed Form 1099-SA with the IRS and the account beneficiary as
Statements to recipients.
soon as you become aware of the error. See Corrected Returns on
Taxpayer identification numbers (TIN).
Paper Forms in the 2018 General Instructions for Certain Information
Backup withholding.
Returns for more information.
Penalties.
Other general topics.
HSA Closure Under the USA PATRIOT Act
You can get the general instructions from
General Instructions for
Certain Information
Returns, IRS.gov/Form1099SA, and
IRS.gov/
If an HSA is closed at any time by the HSA trustee or custodian due
Form5498SA.
to a failure of the participant to satisfy the Customer Identification
Program requirements described in section 326 of the USA
Online fillable form. Due to the very low volume of paper Forms
PATRIOT Act, the distribution from the HSA must be reported.
1099-SA and 5498-SA received and processed by the IRS each
year, these forms have been converted to an online fillable format.
If a regular contribution is made to the HSA that is closed, and a
You may fill out the forms, found online at
IRS.gov/Form1099SA
and
distribution is made to the participant, enter the gross distribution in
IRS.gov/Form5498SA, and send Copy B to the recipient. For filing
box 1. If no earnings are distributed, enter zero in box 2. If earnings
with the IRS, follow the applicable procedures for filing electronically
are distributed, enter the amount of earnings in box 2. Enter code 2
if you are filing 250 or more forms. For Forms 1099-SA and
in box 3. See the instructions for boxes 1 through 3, later.
5498-SA only, if you are filing these forms on paper, you may send
in the black and white Copy As with Form 1096 that you print from
In addition, Form 5498-SA must be filed to report any rollover
the IRS website.
(qualified HSA funding distributions (trustee-to-trustee transfers from
an IRA to an HSA under section 408(d)(9))) contributions to the HSA
Specific Instructions for Form
subsequently closed by the trustee or custodian. See the Specific
Instructions for Form 5498-SA, later.
1099-SA
Death of Account Holder
File Form 1099-SA, Distributions From an HSA, Archer MSA, or
Archer MSAs and MA MSAs. When the account holder dies and
Medicare Advantage MSA, to report distributions made from a
the designated beneficiary is the surviving spouse, the following
health savings account (HSA), Archer medical savings account
apply.
(Archer MSA), or Medicare Advantage MSA (MA MSA). The
The spouse becomes the account holder of the Archer MSA.
distribution may have been paid directly to a medical service
An MA MSA is treated as an Archer MSA of the spouse for
provider or to the account holder. A separate return must be filed for
distribution purposes.
each plan type.
Distributions from these accounts are subject to the rules that
Transfers. Do not report a trustee-to-trustee transfer from one
apply to Archer MSAs.
Archer MSA or MA MSA to another Archer MSA or MA MSA, from
If the designated beneficiary is not the spouse or there is no
an Archer MSA to an HSA, or from one HSA to another HSA. For
named beneficiary, the account ceases to be an MSA as of the date
reporting purposes, contributions and rollovers do not include
of death and the fair market value (FMV) on that date is reported.
transfers.
If there is more than one recipient, the FMV should be allocated
HSA mistaken distributions. If amounts were distributed during
among them, as appropriate.
the year from an HSA because of a mistake of fact due to
If the beneficiary is the estate, enter the estate's name and TIN in
reasonable cause, the account beneficiary may repay the mistaken
place of the recipient's on the form.
distribution no later than April 15 following the first year the account
beneficiary knew or should have known the distribution was a
Aug 08, 2017
Cat. No. 38470S

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