A 1099-SA is a tax form the IRS uses to report money withdrawn from Health Savings Accounts (HSA), Archer Medical Savings Accounts (Archer MSA), and Medicare Advantage Medical Savings Accounts (Medicare Advantage MSA).
If you took money out of one of these accounts during the year, you’ll get a 1099-SA. It shows how much you withdrew, whether any of it is taxable, and how much went toward qualified medical expenses.
Why does the 1099-SA matter?
If you have an HSA or MSA, you need to understand the 1099-SA. It’s your responsibility to report these withdrawals correctly on your tax return to stay compliant with IRS rules.
This form also helps determine if you owe taxes on any distributions. If you used the funds for non-medical expenses, you might face penalties. Knowing what’s on your 1099-SA can help you avoid surprises at tax time.
What’s on a 1099-SA?
The 1099-SA breaks down your HSA or MSA withdrawals for the year. It includes:
- The total amount you withdrew
- How much (if any) is taxable
- How much went toward qualified medical expenses
- Your name, address, and taxpayer ID
How do you get a 1099-SA?
If you withdrew money from your HSA or MSA, your bank or financial institution will send you a 1099-SA. You should get it by January 31st of the following year. Most banks also make it available online through their website or account portal.
If you don’t receive it by then, reach out to your financial institution to make sure you have everything you need for your taxes.
What does gross distribution mean on a 1099-SA?
Gross distribution is the total amount you took out of your HSA or MSA during the year. It includes every withdrawal, whether you used the money for qualified medical expenses or not.
The IRS gets this information too, so if you spent any of it on non-medical expenses, you might owe taxes and possibly penalties.
