Wednesday, March 20, 2013

Distributions From an HSA etc.

Q.  What do I do with Form 1099-SA? I've never seen one before.

A.  If you received this form, you made a withdrawal from a HSA (Health Savings Account) Archer MSA, or a MA MSA. In either case, usually the funds are used to pay for medical care. If you used the proceeds to pay for medical care,  you will need to file form 8889 to report the amount which is not taxable.  Insert the amount used (usually all of it) to cover your medical care costs.  If the proceeds were not used to pay for medical care, you will be taxed on the entire amount. More  paperwork and more headaches!

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