IRS Form 5498-SA is used by trustees and administrators to report contributions, rollovers, and fair market value (FMV) of Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs. This form helps the IRS track tax-advantaged health account activity and ensures compliance with contribution limits. While account holders don’t file this form, trustees must submit it by the deadline. Professional tax services can streamline the process for institutions managing multiple accounts.
Who Needs to File Form 5498-SA?
You must file Form 5498-SA if you are:
- A trustee or administrator of an HSA, Archer MSA, or Medicare Advantage MSA.
- Reporting contributions, rollovers, or the FMV of these accounts for the tax year.
Note: Account holders receive a copy of Form 5498-SA for their records but do not file it with their tax return.
Step-by-Step Guide to Filling Out Form 5498-SA
Step 1: Gather Required Information
Before starting, collect:
- Account holder’s name, address, and Social Security Number (SSN).
- Total contributions made to the account (including employer contributions).
- Rollover amounts (if applicable).
- Fair market value (FMV) of the account as of December 31.
Step 2: Complete Part I – Account Holder & Trustee Details
- Box 1: Check the type of account (HSA, Archer MSA, or Medicare Advantage MSA).
- Box 2: Enter the account holder’s SSN.
- Box 3: Provide the trustee’s name, address, and EIN.
Step 3: Complete Part II – Contributions & Rollovers
- Box 4: Report total contributions made during the tax year (including employer contributions).
- 2024 HSA limits:
- 4,150 (self−only) /
- 4,150 (self−only) /8,300 (family).
- 2024 Archer MSA limits:
- 5,150 (self−only) /
- 5,150 (self−only) / 10,300 (family).
- Box 5: Enter rollover contributions from another account.
- Box 6: Note any excess contributions that exceed IRS limits.
Step 4: Complete Part III – Account Value
- Box 7: Enter the FMV of the account as of December 31.
- Box 8: Check if the account holder is eligible for catch-up contributions (age 55+ for HSAs).
Step 5: Submit Form 5498-SA
- Mail to:
Internal Revenue Service
Austin, TX 73301-0215
- E-file: Use the IRS FIRE system for bulk submissions.
- Deadline: File by May 31, 2024.
Note: Provide a copy to the account holder by January 31, 2024.
Common Mistakes to Avoid
- Missing the May 31 deadline: Late filing penalties apply ($310 per form).
- Incorrect contribution amounts: Double-check IRS limits for 2024.
- Failing to report rollovers: These must be included in Box 5.
For institutions managing multiple accounts, tax services ensure accurate and timely filing.
Final Thoughts
Filing IRS Form 5498-SA is critical for trustees to report health account contributions and comply with IRS regulations. By following these steps, you can ensure accurate reporting of contributions, rollovers, and account values. For institutions handling large volumes of accounts, professional tax services offer efficiency and peace of mind.
