Solved: Didn't get 1099 SA. Had a distribution from my HSA.. Bank says no 1099 SA is generated if interest in acct is less than $10. Are they correct, how do i enter info.
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mpilarw
New Member

Didn't get 1099 SA. Had a distribution from my HSA.. Bank says no 1099 SA is generated if interest in acct is less than $10. Are they correct, how do i enter info.

I thought bank was required to produce 1099 SA if there was a distribution, regardless of interest in acct.

1 Best answer

Accepted Solutions
BMcCalpin
Level 13

Didn't get 1099 SA. Had a distribution from my HSA.. Bank says no 1099 SA is generated if interest in acct is less than $10. Are they correct, how do i enter info.

 

[For every state except California and New Jersey] Are you saying that the distribution was for fees (like management fees) paid on the account? If so, this is not considered a distribution and needs no 1099-SA.

 

[For California and New Jersey] HSA are considered normal investment accounts in these two states, therefore, you have to report any interest earnings. However, the HSA custodian probably won't issue a 1099-SA (see above), so you will have to closely examine your HSA statements for interest earnings or ask for a customer service rep who is familiar with the needs of customers in California and New Jersey.

 

Are you saying that there is less than $10 in the HSA, but that you had at least one distribution for medical expenses? In that case, the HSA administrator is required by the IRS to issue a 1099-SA no matter how little is in the account. Tell them to see the table on page 27 of the 2019 General Instructions for Certain Information Returns which requires the sending of the 1099-SA for "all amounts".

 

[Edited 3/10/2020 5:13 pm CDT - for 2019 and added references to CA and NJ]

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2 Replies
BMcCalpin
Level 13

Didn't get 1099 SA. Had a distribution from my HSA.. Bank says no 1099 SA is generated if interest in acct is less than $10. Are they correct, how do i enter info.

 

[For every state except California and New Jersey] Are you saying that the distribution was for fees (like management fees) paid on the account? If so, this is not considered a distribution and needs no 1099-SA.

 

[For California and New Jersey] HSA are considered normal investment accounts in these two states, therefore, you have to report any interest earnings. However, the HSA custodian probably won't issue a 1099-SA (see above), so you will have to closely examine your HSA statements for interest earnings or ask for a customer service rep who is familiar with the needs of customers in California and New Jersey.

 

Are you saying that there is less than $10 in the HSA, but that you had at least one distribution for medical expenses? In that case, the HSA administrator is required by the IRS to issue a 1099-SA no matter how little is in the account. Tell them to see the table on page 27 of the 2019 General Instructions for Certain Information Returns which requires the sending of the 1099-SA for "all amounts".

 

[Edited 3/10/2020 5:13 pm CDT - for 2019 and added references to CA and NJ]

View solution in original post

mpilarw7
New Member

Didn't get 1099 SA. Had a distribution from my HSA.. Bank says no 1099 SA is generated if interest in acct is less than $10. Are they correct, how do i enter info.

Thank you.  That was the answer I needed.
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