Employers : Employers are required to report pre-tax contributions made by the employee through payroll deduction and/or contributions made on behalf of the employee by the employer. This is accomplished by reporting those amounts on the employee's W-2 in Box 12 with a Code W.
Custodians : Custodial banks are required to report to the account owner the amount of distributions on a 1099-SA. Contributions are reported to the acccount owner on a 5498-SA.
|Contributions reporting update:
The Tax Relief and Health Care Act of 2006 (TRHCA) permits two new types of contributions to be made to HSAs: "qualified HSA distributions" (which are direct rollover contributions made to HSAs from health FSAs and HRAs) and "qualified HSA funding distributions" (which are direct trustee-to-trustee transfers made into HSAs from IRAs).
The TRHCA-updated version of Form 5498-SA and its Instructions indicate that qualified HSA distributions from health FSAs or HRAs that are contributed to HSAs for 2007 must be reported in Box 4 (Rollover Contributions), and that qualified HSA funding distributions from IRAs that are contributed to HSAs for 2007 must be reported in Box 2 (Total Contributions Made in 2007).
Account Owners : Account owners are required to complete and file an IRS form 8889 with their 1040 annual tax return. Account owners may not file a short form return.
Instructions for Forms 1099-SA and 5498-SA
Instructions for Form 8889