Health Savings Accounts (HSAs) – Reporting Rules

A health savings account (HSA) is a trust or account used to pay medical expenses that a high deductible health plan (HDHP) does not pay. HSAs offer triple tax advantages to account owners, including tax exemptions for contributions, earnings and distributions. Many employers offer HDHPs to control premium costs and pair the coverage with HSAs to help employees cover their health care expenses.

The Internal Revenue Service (IRS) has stated that all contributions to HSAs and distributions from HSAs are reportable transactions for federal tax purposes. HSA owners and employers that contribute to HSAs are both responsible for HSA reporting.

This Compliance Overview provides general HSA reporting information for both employers and individuals.

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