We want to help you by letting you know what forms we send you and what they mean for you.
- In late January or early February, you should receive a 1099-SA form. It is available on the online portal and will be mailed by January 31st. This form reports any withdrawals you made from your HSA throughout the tax year.
- At the same time you receive the 1099-SA, we will also send a 5498-SA. This form will also be available on the online portal. This form reports all of the contributions to your HSA throughout the tax year. Since you can make contributions that count back to last year’s taxes up through April 15th, we will send you a revised 5498-SA by May 31st if you do make more contributions that count back to the previous tax year.
- When you receive your forms, you can check them for accuracy by comparing them to your Annual Statement. The Annual Statement will be available to you online early in the new year. To find your statement:
- Sign in at www.hellofurther.com. (this will include additional sign-in steps for SSO partner portals)
- Select your account
- Click Statements
- Choose a tax year and timeframe
- Select your statement.
- When you have collected your documentation, you will need to fill out Form 8889 and attach it to Form 1040. Form 8889 reports all of your HSA contributions and withdrawals to the IRS to ensure you receive your appropriate tax benefits. If you choose to use tax preparation services, many will fill this form out for you, if you can provide your contribution and withdrawal information for the year. All of your contributions and withdrawals should be on your Annual Statement, which should match your 1099-SA and 5498-SA.
If you do receive a revised 5498-SA in May, you do not have to file an extension and postpone filing your taxes until you receive it. You can file your taxes on time with your own records, or use the information from your annual statement. This form can be used for confirmation and record-keeping. If you’re unsure about what to file, please consult a tax advisor.
You won’t need receipts from HSA purchases to file your taxes, but the IRS does require you to keep them for seven years in case you are audited. Further® can help you organize your receipts with our My Records and Receipts feature.
HSAs are the only type of spending account requiring these forms to complete your taxes. If you have another account type – such as an FSA, HRA, DCAP, or TRA – you won’t receive these forms. If you have a VEBA account, we will provide a 1099-MISC form in certain situations.
What if I contributed too much?
Any contributions over the IRS’s limit for the year are excess contributions. A six percent excise tax is imposed on the account holder for excess individual or employer contributions for each tax year.
If an upcoming employer contribution will go over the limit, you must make every reasonable effort to notify your employer before the contribution is made.
If excess contributions have been made, you won’t pay a six percent excise tax on the excess amount if you:
- Withdraw the excess contributions by the due date of your tax return and
- Withdraw any earnings on the withdrawn contributions and include the earnings in “other income” on your tax return for the year
To withdraw the excess contribution, sign into your account at hellofurther.com and click Submit a Claim. Choose HSA Withdrawal Request and the distribution type Excess Contribution. Further will compute the taxable earnings on the excess contributions for you on your next 1099-SA IRS reporting. If contributions are made with pretax dollars, then both the withdrawal and the earnings are included in your taxable income.
State and/or federal laws could be passed in the future that affect the tax benefits of an HSA. Tax benefits may also be affected by failure to comply with eligibility and withdrawal requirements.
HSA information in this guide is not intended as legal or tax advice. Refer specific questions about federal and state tax ramifications, as they relate to a particular circumstance, to your tax advisor each year.