HSA tax documents

Because your health savings account is potentially tax advantaged, the IRS requires that you report contributions and distributions on your tax return. We’ll mail you both forms, but you can always access them on the member website: “Message Center” > “View Statements” > “HSA Tax Statements.”

Tax form timeline:

Form 1099-SA

Mailed to you by January 31

Used for your tax returns to report distributions from your HSA during the previous calendar year.

Note: You are not required to include the amounts as income unless they were used for non-qualified expenses.

 

Form 5498-SA

Mailed in May of each year

Used to report contributions and/or rollovers into your HSA for the previous tax year.

Note: This form is not needed for your tax returns.

 

Potential Tax Advantages: HSA Account holders can receive federal income tax-free distributions from their HSA to pay or be reimbursed for qualified medical expenses they incur after they establish an HSA. If they receive distributions for other reasons, the amount withdrawn will be subject to income tax and may be subject to an additional 20% tax, unless an exception applies. Any interest or earnings on the assets in the account are federal income tax-free. Account holders may be able to claim a tax deduction for contributions they, or someone other than their employer, makes to their HSA directly (not through payroll deductions). In addition, HSA contributions may reduce state income taxes in certain states. Certain limits may apply to employees who are considered highly compensated key employees. Bank of America [and Merrill] recommends you contact qualified tax or legal counsel before establishing an HSA.