Entering Form 5498-SA for an individual in Lacerte

With a traditional IRA, a certain amount of the contributions you make each year may be tax deductible. However, when you reach retirement age, you must report all IRA withdrawals on your tax return and pay the tax on it. Enter rollover contributions to the HSA or Archer MSA received by you during 2025.

One response to “Where Does Form 5498 Go?”

For details on where you may have entered the Form 5498 information on your tax return, check out the FAQ, Where Do I Enter Form 5498?. It would be best practice to send your Form 5498 or 5498-SA to your tax accountant to ensure they appropriately captured everything. For a good tax accountant who did proper data gathering during tax season, this document confirms everything that they already completed for your most recently filed tax return. While the IRS generally requires individuals to retain tax-related records for at least three years, it is recommended to keep HSA-related documents for a longer period. This is especially important if there are any carryover funds or if HSA distributions occur over an extended period of time.

• It is a prudent practice that should be followed consistently throughout the year to avoid any potential issues or discrepancies.
• Check the box to indicate if this account is an HSA, Archer MSA, or MA MSA.
• These amounts were already included in box 1, and don’t need to be re-entered.

This may involve filing an amended tax return or contacting the IRS directly for guidance and assistance. Failure to meet the filing deadlines can result in penalties imposed by the IRS. These penalties may include late filing penalties, late payment penalties, and interest charges on any taxes owed. The exact penalties and interest rates can vary based on the specific circumstances and the amount of time past the deadline. The maximum contribution limits for HSAs are set by the IRS and can change from year to year.

You are required to file if you are the trustee or custodian of an HSA, Archer MSA, or MA MSA. For example, the account beneficiary reasonably, but mistakenly, believed that an expense was a qualified medical expense and was reimbursed for that expense from the HSA. The account beneficiary then repays the mistaken distribution to the HSA.

Once you have done 4.A and 4.B, you have entered what you needed to for your HSA for 2023. I don’t know why you’ve gotten 1099-SA most years, if you didn’t take anything out of the HSA… The following TurboTax Online offers may be available for tax year 2024. Intuit reserves the right to modify or terminate any offer at any time for any reason in its sole discretion. Unless otherwise stated, each offer is not available in combination with any other TurboTax offers.

HSAs are a type of tax-advantaged savings account that allows individuals to set aside funds for future medical expenses. Contributions made to an HSA are tax-deductible, and the earnings on these contributions grow tax-free. Additionally, withdrawals from an HSA are tax-free if used for qualified medical expenses. To ensure compliance with IRS regulations and to maintain accurate records, the IRS requires the use of Form 5498-SA for reporting. First and foremost, it is essential to keep all forms and documents related to your HSA. This includes Form 5498-SA, which summarizes contributions, distributions, and the fair market value of your HSA.

Box 5. Fair Market Value of HSA, Archer MSA, or MA MSA

Additionally, the IRS encourages you to designate an account number for all Forms 1099-SA that you file. If you are required to file Form 1099-SA, you must provide a statement to the recipient. For more information about the requirement to furnish a Form 1099-SA or acceptable substitute statement to recipients, see part M in the current General Instructions for Certain Information Returns. The information on Form 5498-SA is used by the IRS to verify that contributions made to an HSA are within the contribution limits set by the government. The information on Form 5498 is used by the IRS to verify that contributions made to an IRA are within the contribution limits set by the government.

Box 5. Checkbox

You entered the initial contributions when you entered your W-2. Whether you already have an HSA or are considering opening one, understanding IRS Form 5498-SA is crucial to ensure you meet your tax obligations and take full advantage of the benefits of an HSA. Let’s dive deeper into this essential form and gain a comprehensive understanding of its purpose and usage. Learn about the purpose and usage of IRS Form 5498-SA in finance. Discover how this form helps track contributions made to your HSA or MSA account. You don’t need to enter information from your Form 5498 (IRA Contribution Information) into TurboTax like you do with a W-2 or 1099s.

• This type of account allows you to make contributions using after-tax dollars—meaning that you already paid tax on the money you use to make the contribution.
• And by the way, trustees, NOT individual taxpayers, are required to file Form 5498 with the IRS.
• For individuals, the deadline to file the tax return, including any required forms such as Form 5498-SA, is usually April 15th of each year.
• You may, but you are not required to, provide the participant with a statement of the December 31, 2025, FMV of the participant’s account by February 2, 2026.
• Once you have done 4.A and 4.B, you have entered what you needed to for your HSA for 2023.

The first line shows you the amount with code W in box 12 on your W-2. The second line is where you enter the sum of any contributions you made directly to the HSA, outside of your employer. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 5498-SA.

Statements to Recipients

Finally, maintaining required documentation and engaging in thorough record-keeping practices is essential for individuals with HSAs. By keeping track of contributions, distributions, and qualified medical expenses, individuals can successfully manage their HSA and effectively navigate their financial obligations. It’s also important to note that individuals should not rely solely on Form 5498-SA to track qualified medical expenses. While the form provides a summary of the distributions made from the HSA, it does not provide an itemized breakdown of the expenses. Therefore, maintaining detailed records is crucial to validate the use of HSA funds for qualified medical expenses. By accurately reporting distributions from an 5498-sa turbotax HSA on Form 5498-SA, individuals can ensure compliance with IRS regulations and establish a clear record of how HSA funds were used.

Don’t worry — you didn’t fail to provide your tax accountant with an “important” document for your recent income tax return filing. Here’s what you need to know about Form 5498 and Form 5498-SA, and what to do if you received them. When it comes to IRS Form 5498-SA and Health Savings Accounts (HSAs), maintaining accurate documentation and records is crucial.

Non-qualified expenses, on the other hand, include expenses not directly related to medical care, such as cosmetic surgery or health club membership fees. Distributions used for non-qualified expenses are subject to taxation and may incur additional tax penalties. One key aspect of understanding Form 5498-SA is knowing the parties involved. The HSA trustee or custodian is responsible for issuing the form, while the account holder is the individual who contributes to the HSA and manages the account. The IRS receives a copy of the form to ensure compliance with tax regulations.

Instructions for Forms 1099-SA and 5498-SA (

They are typically tax-deductible, meaning they can reduce an individual’s taxable income for the year. Additionally, the earnings on HSA contributions grow tax-free, allowing individuals to potentially accumulate more funds for future medical expenses. When filling out Form 5498-SA, the HSA trustee or custodian will report the total contributions made by the account holder. This includes both employer contributions, if applicable, and individual contributions. It’s essential for the account holder to review the form to ensure accuracy and verify that all contributions have been properly recorded.

Individuals should consult their HSA provider or check their account statements to determine the breakdown between employer and individual contributions. The third section of the form reports any distributions taken from the HSA during the tax year. It includes the amount distributed and indicates whether the distribution was a qualified medical expense or a non-qualified expense. It’s important to note that only distributions used for qualified medical expenses are tax-free. If you did, you may be able to deduct some of those contributions on your federal tax return.

It is important for IRA owners to review their Form 5498 and Form 5498-SA each year to ensure that the information is accurate. If there are any errors or discrepancies, the account holder should contact their financial institution to have the information corrected. Similar to contributions to an IRA, HSA contributions are allowed up until the tax filing deadline. That means Form 5498-SA can’t be sent until after the tax filing deadline. Form 5498-SA is typically issued to HSA owners and beneficiaries by the end of May each year.

Form 5498-SA reports contributions to yourHealth Savings Account (HSA), Archer MSA, or Medicare Advantage MSA. All features, services, support, prices, offers, terms and conditions are subject to change without notice. TurboTax Premium uncovers industry-specific deductions for more tax breaks. You shouldn’t really need to enter anything into the 8889 unless you made contributions outside of payroll. Refer to the IRS Instructions for Form 8853 and the Instructions for Form 8889 for information on entering Form 5498-SA, box 4. Refer to the IRS Instructions for Form 5498-SA for more information.

IRS Form 5498-SA is a document used to report information related to contributions, distributions, and the fair market value (FMV) of assets held in a Health Savings Account (HSA). The form is typically provided by the HSA trustee or custodian to the account holder and the IRS. Your contributions aren’t deductible on your tax return, but the tax savings come later. This type of account allows you to make contributions using after-tax dollars—meaning that you already paid tax on the money you use to make the contribution. But when you start making withdrawals during retirement, those withdrawals are tax free and you don’t have to pay taxes on them. Under these circumstances, the mistaken distribution is not included in gross income, is not subject to the additional 20% tax, and the repayment is not subject to the excise tax on excess contributions.