2020 Form 5498 SA Instructions

Updated on May 28, 2021 - 10:30 AM by Admin, TaxBandits

If you’re the custodian of a Health Savings Account (HSA), you must complete Form 5498 SA for each participant. To assist you in completing Form 5498 SA for 2020, we have explained everything related to the form in this article.

The following are the topics covered under this:

1. What is Form 5498 SA?

The IRS Form 5498 SA is a tax form used to report Health Savings Account (HSA) information. These health savings arrangements include the following:

  • Health Savings Account (HSA)
  • Archer Medical Savings Account (MSA)
  • Medical Advantage MSA (MA MSA)

Based on the plan provided, you must complete the required information on this form and file it
with the IRS.

2. Who is required to file 5498 SA Form?

All entities that manage these accounts are required to file Form 5498 SA. These entities are referred to as the trustee or custodian of the plan. If you’re a custodian or trustee of the plan, you must send a form copy to participants as well.

3. What information is reported on Form 5498 SA?

Trustees or custodians of these health savings accounts must report the contributions made to the account, the Fair Market Value, and any rollovers that occurred during the current tax year.

4. Instructions for the IRS Form 5498 SA

How to fill out Form 5498 SA

The Form 5498 SA has six lines total. Initially, the trustee will need to enter their Name, TIN, and address. They will then need to answer the name, TIN, address, and account number of the account participant.

  • Line 1

    The trustee should enter the participant’s contributions to their Archer MSA. No HSA information should be entered on this line.

  • Line 2

    Enter the participant’s total contributions for the 2020 tax year. You should include any contributions that were made in 2021 for the tax year 2020.

  • Line 3

    Enter the total HSA or Archer MSA contributions made in 2021 for 2021.

  • Line 4

    Enter any rollover contributions.

  • Line 5

    Enter the Fair Market Value of the HSA, MSA, or MA MSA on line 5.

  • Line 6

    Check the box to indicate whether or not the account is an HSA, Archer MSA, or MA MSA. Remember, if the participant has more than one type of account, you must file a separate form for each of them.

5. When is the deadline to file Form 5498-SA?

The deadline to file Form 5498 SA with the IRS and mail the plan participant a form copy is June 30, 2021.

6. How to E-File Form 5498?

Filing Form 5498 SA online is much more convenient than paper filing. When you e-file Form 5498 SA, you can easily track the status of your return. You can also send the form copies to all participants using TaxBandits Postal Mailing Service at ease.

Looking for an IRS-authorized e-file service provider? TaxBandits is here! Create a free account with TaxBandits and follow the steps below:

  • Sign in to TaxBandits.

  • Go to Start New Form >> Form 5498.

  • Select Tax Year.

  • Type Trustee, Participant, and Form 5498 SA details.

  • Pay for services you choose and transmit the return to the IRS.

We also provide online access and postal mailing of the participant copy. Get started with TaxBandits
and e-file 5498 SA today!

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