Benefit Resource (BRI) has been simplifying benefits for 30 years. We’re here to provide you with a short guide to help you understand the required tax documents for your pre-tax benefits.
A Health Savings Account (HSA) is a savings account that provides tax-free contributions and potential tax deductions for qualified medical expenses incurred by the holder. HSAs are not subject to federal income taxes, and an HSA can be transferred from one qualifying individual to another without penalty.
There are three tax documents associated with HSAs:
- Form 1099-SA
- Form 5498-SA
- Form 8889
Use the information found in the 1099-SA form, which you can find online, to fill out the IRS tax form 8889. The 8889 form is the only document you need to submit with your taxes. To report your HSA contributions on your tax return, you will need a copy of your W-2 for the total pre-tax contributions made by you through payroll or by your employer.
For BRI Customers
HSAs have tax documents sent from the custodial banks, and any 121 Benefits migrated employees will receive letters from your prior 2021 accounts and letters (and online access) for the custodial bank. Keep in mind all bank-related HSA tax docs can be accessed online once made available by the custodial bank. You will receive periodic account statements by mail. A paper statement fee applies (see your HSA account holder agreement). Avoid this fee by logging into your account through BRIWEB and updating your statement preferences to receive electronic statements.
A Flexible Spending Account (FSA) is a great way to save money on your healthcare costs. If you have a high-deductible health plan, an FSA can help you pay for your deductible. You can also use an FSA to pay for copays and other medical expenses.
There are three types of FSA account:
- Medical FSA
- Dependent Care FSA
- Limited Purpose FSA
The health care FSA is a pre-tax account used to pay for medical expenses not covered by insurance.
For health and limited health FSAs, you don’t have to file anything with your return. However, if you have a dependent care FSA, you will need to file Form 2441 with your return.
For Non-HSA BRI Customers
BRI advises that all other pre-tax benefits have no tax documents coming from BRI; instead, your W2 from your employer will display any pre-tax withholdings. Non-HSA accounts are straightforward regarding taxes because there’s nothing separate or extra that needs to be included. Make sure you double-check your plan to avoid confusing an FSA with an HSA account.