Form 5498-SA (HSA, Archer MSA, or Medicare Advantage MSA Information) (2021); Instructions for Forms 1099-SA and 5498-SA (2021)
The IRS has released Form 5498-SA for the 2021 tax year, along with its instructions, which are combined with the instructions for Form 1099-SA. (The 2021 General Instructions for Certain Information Returns, which relate to these and certain other information returns, have not yet been released.) Form 5498-SA is used by trustees and custodians of HSAs, Archer MSAs, and Medicare Advantage MSAs to report contributions to (and the fair market value of) these accounts, while Form 1099-SA is used to report distributions from these accounts. Last year, Form 1099-SA was converted from a form that is revised annually to a continuous use form, meaning that Form 1099-SA and its instructions will only be updated as needed (see our Checkpoint article). The combined instructions have been modified to reflect this change and to update filing and delivery deadlines. Otherwise, the new versions of Form 5498-SA and its instructions are virtually the same as their 2020 counterparts.
EBIA Comment: The 2021 forms should not be used until 2022, when reporting for the 2021 tax year is due. These forms provide useful information to account holders, who have reporting obligations of their own. Generally, HSA account holders report their contributions and distributions on Form 8889, while Archer MSA and Medicare Advantage MSA account holders report on Form 8853. For more information, see EBIA’s Consumer-Driven Health Care manual at Section XVII (“HSAs: Reporting Requirements”). You may also be interested in our webinar: “Learning the Ropes: An Introduction to HRAs and HSAs” (recorded on 3/11/20).
Contributing Editors: EBIA Staff.