Sterling provides our accountholders with quarterly reports on HSA account activity for tax filing purposes. Sterling provides accountholders with two tax forms annually. For a quick tutorial on where to find and download your tax forms, watch our video below.
Form 1099-SA: Sterling generates this form for our accountholders in January of every year. Log on to your account to view and download it. Sterling sends an electronic version of this report to the IRS. We report distributions made from the HSA account as requested by the accountholder.
Form 5498-SA: Sterling generates this form for our accountholders in January of every year. Log on to your account to view and download it. We send an electronic version of this report to the IRS. We report the contributions made to the HSA account, regardless of who made the contribution
ABOUT QUALIFIED MEDICAL EXPENSES
It is the accountholder’s responsibility to determine if disbursements from an HSA are qualified medical expenses. Sterling can help answer questions if you are uncertain about whether a bill will meet IRS requirements. Please refer to the IRS, defines categories of qualified expenses here: http://www.irs.gov/pub/irs-pdf/p502.pdf
INDIVIDUAL STATE TAXES – GET INFORMED
As a service to our accountholders, Sterling tracks deposits and alerts accountholders who may be exceeding the maximum allowed by law. HSA contributions are Federally tax-free in all states. Individual state taxes may apply to both employer and accountholder contributions and interest earned. Consult your tax advisor for additional information and inform your payroll department (if you’re making contributions through payroll deduction) so that contributions are set up in accordance with your state tax rules as they apply to HSAs.
GET MORE INFO
For more information on HSAs and taxes, visit https://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx