2023 Form 5498 SA HSA, Archer MSA, or Medicare Advantage MSA Information

Purpose of Form 5498-S

The primary purpose of Form 5498-SA is to report the total contributions made to an individual's HSA, Archer MSA, or Medicare Advantage MSA during the previous tax year. This information is essential for account holders to properly report their healthcare-related tax deductions and ensure compliance with applicable contribution limits. Additionally, Form 5498-SA provides details on the fair market value of the account as of December 31, which helps account holders and the IRS track the growth and status of these tax-advantaged accounts.

Reporting Health Savings Account (HSA) Contributions

HSAs are tax-advantaged accounts that allow individuals with high-deductible health plans to save and pay for qualified medical expenses. Form 5498-SA is used to report the total HSA contributions made by the account holder, their employer, or any other third party during the previous tax year. This information is critical for account holders to properly claim the HSA deduction on their individual tax return and ensure they stay within the annual contribution limits set by the IRS.

Reporting Archer Medical Savings Account (MSA) Contributions

Archer MSAs are similar to HSAs, but they are designed for self-employed individuals and employees of small businesses. Like HSAs, Form 5498-SA is used to report the total Archer MSA contributions made by the account holder, their employer, or any other third party during the previous tax year. This information helps account holders properly claim the Archer MSA deduction and ensures they comply with the applicable contribution limits.

Deadlines for Filing and Distributing Form 5498-SA

Form 5498-SA must be filed with the IRS and distributed to account holders by May 31 of the year following the tax year being reported. This deadline ensures that account holders have the necessary information to accurately report their healthcare-related tax deductions and contributions on their individual tax returns. Failure to file or distribute Form 5498-SA by the deadline can result in penalties and other enforcement actions by the IRS.

For the current year's Form 5498-SA, click here.

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