Did you make any contributions to or withdrawals from an MSA?

A Medical Savings Account (MSA) is a tax-exempt account used to pay for qualified medical expenses. It functions similarly to a Health Savings Account (HSA) but applies to specific high-deductible health plans and is less commonly used.

Contributions:

  • Contributions to an MSA are deductible, even if you do not itemize.
  • If you made contributions in 2025, you should receive Form 5498-SA.
    • Look for the Archer MSA or MA MSA box checked in Box 6 to confirm the account type.

Withdrawals:

  • The IRS requires you to report any distributions (withdrawals) from your MSA.
  • If you withdrew funds in 2025, you should receive Form 1099-SA.
    • The Archer MSA or MA MSA box will be checked in Box 5.

Tax Implications:

  • Qualified medical expenses paid with MSA funds are not taxable.
  • Non-qualified withdrawals are subject to income tax and may incur a penalty.
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