Why Does IRS Form 5498 SA Have Fair Market Value of HSA? - Explained

IRS Form 5498-SA includes the Fair Market Value (FMV) of your Health Savings Account (HSA) as it is a requirement by the IRS to report the total value of your HSA investments. The FMV represents the total worth of your HSA assets, including contributions, interest, and any other income accrued within the account.

It is essential for individuals with HSAs to receive Form 5498-SA annually as it provides a comprehensive overview of the financial status of their HSA.

The FMV on Form 5498-SA is crucial for tax reporting purposes, as it helps the IRS monitor and regulate contributions, distributions, and overall compliance with HSA regulations.

Understanding IRS Form 5498-SA is crucial for HSA holders, as it details the Fair Market Value (FMV) of your Health Savings Account. The FMV reflects the current market value of your account, ensuring that all contributions and earnings are accurately reported for tax purposes.