Have you recently changed employers? Or are you considering making a change? Fortunately, when you participate in a health savings account (HSA) through your employer, your HSA stays with you. There are plenty of myths about HSAs, so let’s tackle what really happens to your HSA when you change employers. You Have Options HSA...
As we enter another season of open enrollment, one crucial topic is top of mind for many employees: HSA and FSA compliance. Health savings accounts (HSAs) and flexible spending accounts (FSAs) are often misunderstood, despite their significant financial advantages. It’s time to clarify the ins and outs of these tax-saving healthcare accounts and answer HSA...
When it comes to navigating the world of employee benefits, there’s a lot to take in, especially if you’re a first timer. Among the suite of benefits you’re likely to be offered, voluntary benefits are often misunderstood. In this blog we explore all the unknown voluntary benefits terms and bring clarity of information to first-time...
The IRS released 2025 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits and more as part of Revenue Procedure 2024-40. These limits undergo annual adjustments to account for inflation. 2025 Medical FSA Contribution Limits (including limited and combination FSAs) 2024: $3,200 per year 2025: $3,300 per year 2025 Medical FSA...
If you’re an employer, is your in-house benefits administration team struggling to juggle the multitude of complexities behind running a successful benefits administration program? Are you spending too much time and resources trying to keep up to date with compliance changes and providing the technology and services your employees need for a positive benefits experience?...
Whether you’re transitioning from your parents’ insurance, landed your first full-time job or are simply obtaining coverage for the first time, choosing health plans and employee benefits can be overwhelming. You’ll likely hear a lot of terms and acronyms that you’ve never heard before. For starters, let’s look at a few considerations when evaluating health...
According to the Bureau of Labor Statistics, employers typically pay around 80% of traditional employer-sponsored healthcare plans on behalf of employees. With rising healthcare costs, your business is most likely struggling to solve this key problem: how to maintain financial stability while providing robust benefits to your employees. But what solutions can actually provide benefits...
The concept of work-life balance has become more than just a buzzword; it’s a necessity for employee satisfaction and retention. According to WorkLife.news, employers are increasingly recognizing the importance of providing ample time off to their employees with more than 80% of U.S. employers planning to change their leave policies over the next two years....
Did you know employers can enhance their benefits offerings by incorporating voluntary benefits? What exactly are voluntary benefits and how can employers design an effective plan? We sat down with Hugh McDaniel, manager of channel partnerships at WEX, to get his insights on crafting voluntary benefits plans that meet the diverse needs of employees. ...
The season for filing taxes is upon us once again. We’re getting closer to the deadline for filing for 2023. We wanted to share a few tips and reminders about health savings accounts (HSA) you’ll need for your tax return.
HSA Tax Prep Checklist
A person’s W-2 shows the wages they earned and any taxes withheld. It also shows pre-tax contributions made by the employee and employer through payroll deductions. (Remember, only contributions made through payroll would show up on a W-2 – if an individual made contributions outside of payroll deductions, sometimes referred to as ad hoc contributions, they won’t be reflected and will need to be included when filing taxes.)
A 1099-SA is the HSA tax form that reports distributions from an individual’s account. This form will be needed when filing taxes.
On the other hand, a 5498-SA reports contributions. It’s different from a W-2 because it’ll show any contributions – not just those made through payroll deductions. HSA administrators have until May 31, 2024 to issue Form 5498-SA to HSA participants. This form is not a requirement when filing taxes.
The instructions provided with each of these forms walk through which boxes reflect which information, as well as basic instructions on how to use the forms.
Form 8889 is used to report any distributions from and contributions to a health savings account. Think of this form as the place where the numbers from forms 1099-SA and 5498-SA or W-2 come together. Any distribution amounts reflected on a Form 1099-SA need to be reported on this form, where the individual will also indicate which distributions were eligible for medical expenses. Any contributions made to an HSA should also be listed on this form –the individual will then carry that information over as deduction information on Form 1040 (or the main tax form they fill out and file with their tax return).
The good news is that if individuals haven’t filed for the tax year yet and haven’t maxed out their annual contribution, they can still make additional contributions to their HSA to count toward the prior year. Normally, it’s recommended to do it by early April to be sure there’s enough time for any changes to process in the account and allow individuals to still complete and meet the tax return deadline.
PLEASE NOTE: In a couple states, HSA funds are taxed.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.
Flex Plans
Forms
HSA
HRA
Retirement
Health Shopper
FSA Store