IRS Issues HSA Distribution Instructions

August 6, 2004 ( - The Internal Revenue Service (IRS) has issued instructions on how tax filers are to report 2004 distributions from a health savings account (HSA) on an IRS Form 1099.

The instructions are in 2004 General Instructions for Forms 1099, 1098, 5498 and W-2G and available at the IRS Web site  here .

The IRS has also replaced Forms 1099-MSA and 5498-MSA, the forms on which distributions from Archer, Medicare+Choice and Medicare Advantage Medical Savings Accounts (MSAs) are reported. Now those distributions, as well as those from HSAs, are to be made on two new forms:

  • Form 1099-SA, used to report distributions from an HSA or an Archer or Medicare+Choice MSA
  • Form 5498-SA, used to report contributions to an HSA and an Archer MSA, as well as the fair market value of an HSA, Archer MSA or Medicare+Choice MSA.

Forms 1099-SA and 5498-SA are not yet available. Nonetheless, the IRS has warned that filers should not use Forms 1099-MSA and 5498-MSA to report distributions or contributions made for 2004. The IRS said that the new forms will be available later this year.