What is Form 1099-SA? HSA and MSA Distribution Reporting

Understanding IRS Form 1099-SA

Form 1099-SA is used to report distributions from Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs. Trustees and custodians of these accounts must file Form 1099-SA for each account holder who received distributions during the tax year.

The form reports gross distributions made to the account holder, along with information about the type of account and any applicable distribution codes. Recipients use this information to determine the taxable portion of their distributions when filing their individual tax returns.

Who Must File Form 1099-SA?

Form 1099-SA must be filed by:

• HSA trustees or custodians reporting distributions from Health Savings Accounts
• Archer MSA trustees reporting distributions from Archer Medical Savings Accounts
• Medicare Advantage MSA trustees reporting distributions from MA MSAs

A separate Form 1099-SA must be filed for each account that had distributions during the year. The form must be provided to the account holder by January 31 following the tax year of the distribution.

Form 1099-SA Box Breakdown

Understanding what each box on Form 1099-SA reports:

• Box 1 (Gross distribution): The total amount distributed from the HSA, Archer MSA, or MA MSA during the year
• Box 2 (Earnings on excess contributions): Any earnings attributable to excess contributions that were distributed
• Box 3 (Distribution code): A code indicating the type of distribution (see distribution codes)
• Box 4 (FMV on date of death): Fair market value of the account on the date of death, if applicable
• Box 5 (Checkbox): Indicates whether the distribution is from an HSA, Archer MSA, or MA MSA

Distribution Codes Explained

Box 3 of Form 1099-SA contains a distribution code that indicates the reason for the distribution. Common codes include:

• Code 1: Normal distribution
• Code 2: Excess contributions
• Code 3: Disability
• Code 4: Death distribution to non-spouse beneficiary
• Code 5: Prohibited transaction
• Code 6: Death distribution to spouse beneficiary

For a complete list and detailed explanations, see our Form 1099-SA Distribution Codes guide.

Qualified Medical Expenses

Distributions used to pay for qualified medical expenses are tax-free. These expenses include payments for medical care as defined by the IRS, such as:

• Doctor and hospital visits
• Prescription medications
• Dental and vision care
• Long-term care insurance premiums (within limits)
• COBRA continuation coverage
• Medicare premiums (for account holders age 65+)

Distributions used for non-qualified expenses are subject to income tax and may incur an additional 20% penalty if the account holder is under age 65 and not disabled.

Related Forms

Form 1099-SA works alongside other HSA/MSA reporting forms:

• Form 5498-SA: Reports contributions made to HSAs and MSAs
• Form 8889: Used by account holders to report HSA contributions and distributions on their individual tax return

E-File Form 1099-SA with BoomTax

E-file your Form 1099-SA with the IRS using BoomTax, an IRS-approved e-file provider. Our platform makes it easy for HSA custodians and financial institutions to file in bulk.

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Filing Deadlines

Form 1099-SA must be filed by the following deadlines:

• Recipient copy: January 31
• IRS filing (paper): February 28
• IRS filing (electronic): March 31

For more details, see our Form 1099-SA due date guide.

External Resources

• IRS: About Form 1099-SA
• IRS Publication 1220: FIRE Specifications