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HSA Tax Tips: What Your Clients Need To Know

With 2018 right around the corner, we’re providing some important HSA tax tips to make sure your clients are prepared for tax season when it comes to their health savings account.

When to Expect Tax Forms

January 2018: If they made withdrawals from their HSA in 2017, they’ll receive IRS Form 1099-SA in the mail from FPS Trust at the end of January. They should use this form to report HSA distributions on their tax return.

May 2018: If they made contributions to their HSA for tax year 2017, they’ll receive IRS Form 5498-SA in the mail from FPS Trust at the end of May. No action is needed on their part, but they should keep this form for their records.

Contribution Limits for 2018

Contribution limits for 2018 are as follows:

Single: $3,450 (up from $3,400 in 2017)

Family: $6,850* (up from $6,750 in 2017)

Catch-up Contribution (age 55+): $1,000

The deadline for making 2017 contributions to their HSA is April 17, 2018. That means they can make a contribution in March 2018 and allocate it to their 2017 contributions if they haven’t already met their contribution limit.

Starting in January, our office will have extended hours to make sure they get all their tax questions answered, so they can feel free to give us a call at (888) 858-2739 (and you can, too!).

*This has been updated to reflect the Family coverage contribution limit change from $6,900 to $6,850 made by the IRS in March 2018.

Author: James Denison