Tax season brings a variety of forms and documents, each critical for accurate reporting. Among these is Form 5498-SA, which relates to health-related savings accounts. Understanding its purpose and how it fits into your tax filings is essential for compliance and maximizing benefits.
HSA and MSA Contribution Data
Health-related savings accounts, including Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs, provide tax advantages. Familiarity with their contribution data is vital for effective financial planning.
Health Savings Accounts
HSAs, designed for individuals with high-deductible health plans, offer a tax-advantaged way to save for medical expenses. For the 2025 tax year, the HSA contribution limits are $4,300 for self-only coverage and $8,550 for family coverage; the catch-up contribution for those age 55 or older remains $1,000.1Internal Revenue Service. Publication 969: Health Savings Accounts and Other Tax‑Favored Health Plans Contributions, made by either the account holder or their employer, are tax-deductible. Earnings are tax-free if used for qualified medical expenses, and unused funds roll over annually. Accurate reporting is crucial to avoid a 6% excise tax on excess contributions.
Archer Medical Savings Accounts
Archer MSAs, governed by Internal Revenue Code Section 220, are tailored for self-employed individuals and small businesses. Though less common since the introduction of HSAs, they still provide tax-preferred savings. For 2025, the contribution limit formula is unchanged: up to 65% of the HDHP deductible for self-only coverage or 75% for family coverage. Contributions are tax-deductible, and distributions for qualified medical expenses are tax-free. Adhering to these contribution limits helps avoid penalties.
Medicare Advantage MSAs
Medicare Advantage MSAs are available to those enrolled in high-deductible Medicare Advantage Plans. The plan deposits money into the MSA each year, and any money left in the account at year-end stays there to use for future healthcare costs.2Medicare.gov. Medicare Medical Savings Account (MSA) Plans
Boxes and Their Contents
Form 5498-SA summarizes contributions to health-related savings accounts. For 2025 reporting, the form uses: Box 1 for employee/self-employed Archer MSA contributions for 2025 (including those made by April 15, 2026, for 2025); Box 2 for total HSA or Archer MSA contributions made in 2025; Box 3 for total HSA or Archer MSA contributions made in 2026 for 2025; Box 4 for rollover contributions; Box 5 for the account’s December 31 fair market value; and Box 6 to identify the type of account.3Internal Revenue Service. Instructions for Forms 1099‑SA and 5498‑SA (2025)
Form 5498-SA does not show your allowable deduction; it reports what the trustee received for the year. For 2025, the HSA statutory limits reflected on your personal tax return remain $4,300 for self-only coverage and $8,550 for family coverage, plus the $1,000 catch-up for those 55 or older.
Coordination with Your Tax Return
Form 5498-SA is not filed with your tax return; the trustee/custodian files it with the IRS and sends you a copy for your records. Use it to reconcile contributions with what you report. HSA withdrawals that aren’t for qualified medical expenses must be reported on Form 8889 and are subject to a 20% additional tax unless an exception applies (death, disability, or after you turn age 65).4Internal Revenue Service. Instructions for Form 8889 (HSA) Proper record-keeping is essential to avoid errors. A distribution you roll over between HSAs within 60 days is generally non‑taxable, but you can make only one such rollover in any 12‑month period. Excess contributions not withdrawn by the tax deadline generally incur a 6% excise tax each year they remain.
Retaining This Form
Keeping Form 5498-SA is important for financial management and compliance. It reconciles your records with IRS data and serves as evidence of account activity. Financial advisors and tax professionals use it to construct a comprehensive financial profile and provide advice on optimizing savings or reducing tax liabilities. It is also a valuable reference for future tax returns, particularly if amendments are required.