Form 5498-SA

Understanding Form 5498-SA: Overview and Key Information
Form 5498-SA is a federal tax form used to report contributions to Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs (MA MSAs). This document must be provided both to the Internal Revenue Service (IRS) and to the account owner.

Purpose of Form 5498-SA
The IRS mandates that financial institutions or entities (known as trustees) managing an HSA, Archer MSA, or MA MSA submit Form 5498-SA for every account they oversee. This form details the total contributions made to the individual’s account throughout the year.

These accounts are tax-advantaged tools designed to help individuals save money for qualified medical expenses not reimbursed by their health insurance. Contributions to these accounts are not taxed (up to the allowable limits), and distributions used for eligible medical costs are also tax-exempt.

While these accounts share the same goal, their rules and eligibility differ:

• HSA: Available to individuals independently or through employers who offer high-deductible health plans. Both employees and employers can contribute. Employers of all sizes, including those using services like Beyond, can provide HSAs.
• Archer MSA: Tailored for self-employed individuals or businesses with 50 or fewer employees. Only one party, either the employer or the employee, can contribute per year.
• MA MSA: These are designated for individuals enrolled in Medicare. Employers and employees generally cannot contribute; contributions are typically made by Medicare.

Who Files Form 5498-SA?
As the managing party, the trustee is responsible for filing Form 5498-SA. Trustees can be banks, credit unions, or qualified financial entities. If an HSA or MSA is part of an employee benefit program through Beyond, the trustee associated with that program will issue the form directly to the participant.

Filing Timeline for Form 5498-SA
Trustees must submit the form to the IRS and provide a copy to the account holder by May 31 of the year following the contribution year. For example, all contributions made in 2024 must be reported by May 31, 2025.

Additionally, HSAs and Archer MSAs allow contributions made from January 1 through April 15 of the following year to be included in the report. So, the 2024 Form 5498-SA may include early 2025 contributions, so long as they are made before the April 15 tax filing deadline.

Understanding Form 5498-SA Boxes

• Box 1: Contributions made by the individual to an Archer MSA, including amounts deposited through April 15 of the following year (excluding HSA contributions).
• Box 2: All contributions made to an HSA or Archer MSA during the tax year.
• Box 3: Contributions made in the current year for the prior tax year (e.g., January 1–April 15, 2025, for tax year 2024).
• Box 4: Rollover amounts added to the account from another qualifying account.
• Box 5: The account’s fair market value as of December 31 of the tax year.
• Box 6: Identifies the type of account: HSA, Archer MSA, or MA MSA.

Full instructions can be found on the IRS website under their Form 5498-SA guidance.

What Employees Should Know About Form 5498-SA
Most employees will engage with HSAs, as eligibility for MA MSAs is uncommon in an employment context.

Key considerations for HSA participants:

• Employer contributions to your HSA are not listed on Form 5498-SA. Instead, both your and your employer’s HSA contributions are reported on Form W-2, Box 12, using code W.
• Contributions made through payroll (as with Beyond-managed benefits) are pre-tax, and cannot be claimed again as a deduction on your tax return.
• Employer HSA contributions are not taxable to you as an employee.
• You are not required to submit Form 5498-SA with your tax return. It’s for reference only—review it for accuracy.
• Trustees may deliver Form 5498-SA by mail or through online portals.
• If the account holder dies, the form is generally sent to their beneficiary.
• Withdrawals are reported on Form 1099-SA, not on 5498-SA.
• Keep the form in your personal tax records.

Claiming Deductions on After-Tax Contributions
Individuals who are self-employed or otherwise not receiving pre-tax benefits (e.g., through a provider like Beyond) can still deduct contributions made with after-tax income on their federal return, provided the contributions do not exceed IRS limits.

Employer Contributions: A Tax Benefit
Employers making contributions to HSAs or Archer MSAs can classify those amounts as deductible business expenses. These contributions are not taxable and can be a strategic component of a benefits package managed through platforms like Beyond.