What is Form 1099-SA?
Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, reports distributions made from a Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage MSA during the tax year.
Who Receives Form 1099-SA?
You will receive Form 1099-SA if you took a distribution from:
- A Health Savings Account (HSA)
- An Archer Medical Savings Account (Archer MSA)
- A Medicare Advantage Medical Savings Account (MA MSA)
The trustee or custodian of the account is required to send this form to both you and the IRS.
When is Form 1099-SA Issued?
Account trustees must send Form 1099-SA to account holders by January 31 for the previous tax year.
What Information Does Form 1099-SA Show?
The form reports:
- Total distributions made during the year
- The type of account (HSA, Archer MSA, or MA MSA)
- The fair market value of the account on the date of death (if applicable)
Are Distributions Taxable?
Distributions from HSAs and MSAs are generally tax-free if used for qualified medical expenses. However, distributions used for non-medical expenses are:
- Included in gross income
- Subject to an additional 20% tax penalty (unless you're disabled or 65 or older)
You must report all distributions on your tax return, even if they were used for qualified medical expenses.
What Should You Do With Form 1099-SA?
Keep Form 1099-SA with your tax records. You'll need the information to complete Form 8889 (for HSA distributions) or Form 8853 (for Archer MSA or MA MSA distributions) when you file your tax return.
Official Source: IRS Form 1099-SA
