Which tax form is used to report distributions from an HSA or Medicare Advantage MSA?

The 1099-SA form is specifically designed for reporting distributions from Health Savings Accounts (HSAs) and Medicare Advantage Medical Savings Accounts (MSAs). This form provides the necessary details about the amount distributed during the year from these accounts, which is crucial for tax reporting purposes. Recipients use the information on the 1099-SA to accurately report their distributions when filing their income tax returns.

In contrast, the other forms serve different purposes:

• The 1099-R is used primarily for reporting distributions from pensions, annuities, retirement plans, or IRAs, which makes it irrelevant in the context of HSAs and MSAs.

• The W-2 form reports wages, tips, and other compensation paid to employees, along with the taxes withheld, and is not related to reporting distributions from HSAs or MSAs.

• The W-4 form is used by employees to inform their employer of their tax withholding preferences and does not pertain to any type of distribution reporting.

Thus, the 1099-SA is the correct and pertinent form for reporting distributions from HSAs or Medicare Advantage MSAs.