What is a 1099-SA Form?

The Internal Revenue Service (IRS) requires the bank/financial institution that administers our HSA accounts to issue IRS Form 1099-SA if you took a distribution from your HSA during the previous tax year. These forms are mailed directly by the bank/financial institution to our domestic medical insurance participants.

You will be asked to input information from this form when filing your taxes. We’ve provided descriptions of some of the fields on the form below.

Box 1 – Gross distribution. This box shows the total amount distributed from the account during the tax year shown on the form.

Box 2 – Earnings on excess contributions. This box shows the earnings on any excess contributions distributed from the HSA by the due date of the income tax return.

Box 3 – Distribution code. This code identifies the type of distribution that occurred. Please see the reverse side of your IRS Form 1099-SA for official IRS code definitions. Provided you only use the funds to pay qualified medical expenses, box 3 should show the distribution code No. 1, which indicates normal tax-free distributions. If you get a distribution code No. 5 in box 3 of a 1099-SA, it means you did not use all distributions from your account for qualified medical expenses. That means you must report some of the distribution on your tax return.

If your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for unqualified expenses. You report the taxable amount on the “other income” line of your tax return and write “HSA” beside it. You will also have to pay an additional tax of 20 percent on the taxable portion of your distribution, which you’ll calculate on Form 8889.

Box 5 – HSA. This box shows the type of account that is reported on this IRS Form 1099-SA.

What is a 5498-SA Form?

The Internal Revenue Service (IRS) requires the bank/financial institution that administers our HSA accounts to issue IRS Form 5498-SA to anyone who maintained a HSA account during the previous tax year. These forms are mailed directly by the bank/financial institution to our domestic medical insurance participants.

You won't need this form to file your taxes but it is important to retain it with your tax records in case you are audited.  We’ve provided descriptions of some of the fields on the form below.

Box 2 – Total Contributions. This box shows the total amount contributed  into the HSA account during the tax year shown on the form.

Box 5 – Fair Market Value of Account. This box shows the fair market value of the account as of December 31 of the tax year being reported.

Box 6 – HSA. This box shows the type of account that is reported on this IRS Form 5498-SA.

What HSA documents should I retain for tax purposes?

If you are audited by the IRS, you may be asked to provide receipts for Qualified Medical Expenses paid using your distributions from your HSA account. 

What are Qualified Medical Expenses?

Qualified medical expenses, as defined by the Internal Revenue Code, generally include:

• Most medical care and services
• Dental and vision care
• Prescription drugs and some over-the-counter drugs that are not covered by insurance or otherwise

Medical insurance premiums are generally not considered qualified medical expenses; however, premiums paid for COBRA continuation coverage, qualified long-term care insurance (subject to certain limitations), and Medicare premiums are considered qualified medical expenses.

For more details about qualified medical expenses, please refer to IRS Publications 969 and 502 or consult a tax professional.

What number should I call if I have questions about my 1099-SA / 5498-SA Form?

For 1099-SA 5498-SA forms please call Highmark's helpline: 1-866-472-0924. Highmark can help you register to access your HSA account online and then they can access your form to send you or they can assist you in how to access the form online.

Where can I find a copy of my 1099-SA /5498-SA Form?

1. Go to www.highmarkbcbs.com and log in to your HSA account
2. Once you are logged in, up at the top, click on "Benefits"
3. Then, select "Health Savings Account"
4. Select "View My Account Details"
5. Under My Accounts section, select "Health Saving Account"
6. Select "Tax Forms" from the top Menu 

In the case that your most recent tax forms do not appear on this list, you will need to send a message to Highmark through their Support option:

1. Log into your account so you're at the main home page, and click on "Support" from the top menu
2. Click "Send a Message"
3. Select your plan
4. Select your topic ("General / Other" works fine)
5. Leave your phone number and preferred callback time (they should not need to call you, but this is required to continue)
6. Compose your message requesting your 1099-SA tax form
   1. You should receive a reply within 24 hours.

To view your reply messages:

1. Log into your account so you're at the main home page, and click on "Support" from the top menu
2. Click "View Inbox"
3. Open your most recent message, and you should see the reply with the attachment there