For Health Savings Account Members: 2014 HSA Statement & Easy Access to 2014 Tax Forms

Please note: This information was distributed in an email to all Health Savings Account (HSA) members on January 15, 2015. If you did not receive that important communication, please contact us at 800.617.4729 or to update your account.

2014 HSA Statement

Your 2014 year-end HSA statement is now available by logging into your account at Go to “Statements” and then “Activity Statements” in the menu. The statement will help you prepare your tax returns for 2014. However, if you plan to make additional contributions to your HSA account for the 2014 tax year, you’ll need to add those contributions to the total shown on your year-end statement. You can contribute up to the maximum allowed for 2014 until April 15, 2015. Details on the maximum contribution limits are below.

Easy Access to 2014 Tax Forms

As of January 15, 2015, HSA related tax forms 1099-SA and 5498-SA are also available when you log into your Sterling account. After you log in, go to “Statements,” and then “Tax Statements.” Scroll down the page to find PDF files of your forms 1099-SA and 5498-SA, if applicable based on 2014 contributions and disbursements.

Below is a summary of the tax forms associated with your HSA account:

Form 1099-SA records all the disbursements you’ve generated in 2014. For many of us, we associate any 1099 form in the context of taxable income. That is NOT the case with HSAs. Form 1099-SA simply tells the IRS what amounts were spent from your HSA account and whether any of the money was used for “nonqualified” expenses. Sterling will also send an electronic version of Form 1099-SA to the IRS. Please note that we will report to the IRS that distributions were for qualified medical expenses except in those instances where we had knowledge of an unqualified distribution or if you closed your account. If your records indicate to the contrary, please let us know so that we can correct our files. If you made no disbursements from your HSA account in 2014, then you will NOT receive Form 1099-SA. Account fees are not reported as disbursements from your HSA account. We are not tax advisors, but we understand that these fees may also be deductible as “Other Miscellaneous Deductions.” Please consult your tax advisor.

Form 5498-SA records all contributions to your HSA account in 2014, regardless of who made them. If you did not make any contributions, then you will not receive this form. You’re allowed to make contributions for the 2014 tax year up to April 15, 2015. If you decide to do so, we’ll reissue your form 5498-SA by no later than May 31, 2015. Revised 5498-SA tax forms will be available online within a few days of posting. Unless you tell us differently, any contributions received in 2015 will be posted to your account as 2015 contributions. If you intend the contributions for 2014, be sure to note that online (from the dropdown menu select “prior year” contributions) or write it on the check.

While Sterling sends you forms that can help you prepare your tax return, these forms should not be sent to the IRS. Instead, you need to send Form 8889 to the IRS along with your tax return. This form can be obtained from the IRS website. While we can’t complete this form for you, your year-end statement is a key source of information for completing the form. Again, if you plan to add more contributions to your HSA account for tax year 2014, you’ll need to add those amounts to what is included on the statement when you file your taxes. We’ve heard from many clients that filing your tax returns without Form 8889 could invite IRS attention, so please include this form in your tax filing.

For Employers & Producer Partners: Evergreen ERISA is Here to Stay!

Effective January 1, 2015, the Sterling Evergreen ERISA Wrap document service will be a permanent part of our product portfolio.

Let us take the worry out of compliance and help you comply with ERISA requirements by taking advantage of this service, as so many clients have done this year.

  • Must have less than 100 eligible employees
  • One time flat fee of only $550
  • Includes 5 year Evergreen ERISA Wrap document
  • Form 5500 not included and all other services and changes additional

Don’t miss this opportunity. Contact your Sterling Sales Representative today and let us help make the complex simple.

Sterling Holiday Hours

In observance of the holidays, Sterling offices will be closed the following days:

  • Wednesday, December 24th
  • Thursday, December 25th
  • Wednesday, December 31st
  • Thursday, January 1st

Please note that even when we aren’t available for personal service, self-service is always available online. If you haven’t yet created an online account, you can do so here.

We hope you enjoy the holiday season and we wish you a happy, healthy and prosperous New Year.