Form 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
Report distributions from Health Savings Accounts, Archer MSAs, and Medicare Advantage MSAs.
Filing Deadline
January 31 (to participant) / February 28 (paper) or March 31 (e-file) to IRS
Common Account
Health Savings Accounts (HSAs)
Tax Treatment
Tax-free if used for qualified medical expenses
Overview
Form 1099-SA reports distributions from Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), and Medicare Advantage MSAs. HSAs are the most common type.
Distributions used for qualified medical expenses are tax-free. Non-qualified distributions are taxable and may be subject to a 20% penalty (or 10% for Archer MSAs) unless an exception applies.
Who Must File
Required Filers
- •HSA trustees, custodians, and administrators
- •Archer MSA and Medicare Advantage MSA trustees
- •Required for any distribution, regardless of amount
- •Must report even if distribution is for qualified medical expenses
Form Structure & Instructions
Here's what information is required in each section:
Distribution Information
Amounts distributed from the account
Important Filing Notes
Qualified Medical Expenses
Tax-free treatment applies only to qualified medical expenses defined in Section 213(d). This includes most medical, dental, and vision expenses not reimbursed by insurance.
Distribution Codes
Box 3 codes: 1 (Normal HSA distribution), 2 (Excess contributions), 3 (Disability), 4 (Death), 5 (Prohibited transaction), 6 (Normal Archer MSA). Code determines tax treatment.
20% Penalty for HSAs
Non-qualified HSA distributions are subject to income tax plus 20% penalty. Penalty doesn't apply after age 65, death, or disability. Keep receipts to prove qualified expenses.
Over-the-Counter Medications
Since 2020, over-the-counter medications and menstrual care products are qualified medical expenses for HSAs without requiring a prescription.
HSA and MSA Distribution Reporting
Simplify health savings account reporting with accurate Form 1099-SA filing. We help financial institutions stay compliant with IRS requirements.
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