HSA Tax Information
How much may I contribute to my HSA for 2010?
You may contribute up to $3,050 as an individual or $6,150 for a family annually. Employees who are 55 or over by 12/31/2010 can contribute an additional $1,000 under the catch-up provision.
What is the cut-off date for contributing to my HSA for 2009?
You may contribute to your 2009 HSA until April 15, 2010
Is there a penalty for over contributing to the HSA?
Yes, you must pay income tax plus a 6% tax penalty on the excess contribution.
What tax forms will I get? What is reported to the IRS?
Two tax forms will be sent to you and to the IRS. The first is Form 1099-SA. This form is sent no later than January 31. Form 1099-SA tells you what distributions have been made from your health savings account during the calendar year. The amount in Box 1 of your 1099-SA will be reported on Line 14a of Form 8889. (Form 8889 is required when filing your taxes if you have a health savings account).
The second form sent to you is Form 5498-SA. This form is sent out no later than May 15, but definitely after the tax filing deadline of April 15. Form 5498-SA cannot be sent any earlier because taxpayers have until April 15 to make contributions to the prior year’s HSA. This form included ALL contributions made between January 1 of the reportable tax year (e.g. 2009) and April 15 of the following tax year (e.g. 2010). Box 1 will be blank unless you have an MSA. Box 2 will have all the contributions to your HSA made in 2009, including any contributions made for 2008 in 2009. Do not report this on your Form 8889. Box 3 has the HSA contributions made in 2009 for 2008. Note that both boxes 2 and 3 may, or may not, match the amount reported on line 2 of Form 8889.
What tax forms do I need to complete?
All taxpayers who have a health savings account must complete Form 8889 if
- they, or someone on their behalf, made contributions for 2009 to their HSA
- they received any HSA distributions in 2009
- they failed to be an eligible individual during the testing period
- they acquired an interest in an HSA because of the death of the account beneficiary
Where can I find Tax forms?
- Form 8889 can be found here: http://www.irs.gov/pub/irs-pdf/i8889.pdf
- Instructions for Form 8889 can be found here: http://www.irs.gov/pub/irs-pdf/i8889.pdf