Last week the IRS released updated Forms 5498-SA and 1099-SA and instructions for the 2016 tax year. As a reminder, Form 5498-SA is used by the trustees and custodians of HSAs, Archer MSAs, and Medicare Advantage MSAs to report contributions to (and the fair market value of) such accounts. The Form 1099-SA is used to report distributions from these accounts.

While the 2016 versions of these forms are only slightly different than the 2015 versions, the filing and delivery deadlines have been updated. In addition, the IRS has significantly changed the way it distributes these forms. The IRS has decided to discontinue its distribution of preprinted forms and provide the forms in an online fillable format.  The discontinuance of the paper forms will result in changes to the procedures used by some trustees and custodians. The change will require trustees and custodians to fill out the forms online and then print copies to provide information needed by account holders. These 2016 forms should not be used until 2017, when reporting for the 2016 tax year is due.

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