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Screen 5498SA - Health, Medical Account Contributions (1040)
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Source data entry
The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the data sharing feature. For more information including a list of available facsimiles, see UltraTax CS Source Data Entry overview.
Health, Medical Account Contribution Information
UltraTax CS calculates the deductible contribution on Form 8853 or Form 8889 and transfers the deduction to Schedule 1 (Form 1040), line 13 (for an HSA) or line 23 (for an MSA) as an adjustment to arrive at adjusted gross income.
The following custom paragraphs relating to health and medical savings accounts are available to include in the transmittal letter.
- A paragraph to report any health savings account or MSA contributions and due date. To select this custom paragraph on a client basis, open the Letter screen (General folder) and select custom paragraphHealth Savings Account (TL)orMedical Savings Account (TL)from one of the Paragraph Description fieldviews.
- A paragraph to inform the taxpayer of the requirement to maintain a health savings account if the increased limit was used to calculate the deduction in the first year of the account. To select this custom paragraph on a client basis, open the Letter screen (General folder) and select custom paragraphForm 8889 Increased Limit (TL)from one of the Paragraph Description fieldviews.
- A paragraph to report qualified HSA funding distributions from an IRA. To select this custom paragraph on a client basis, open the Letter screen (General folder) and select custom paragraphForm 8889 Qual Fund IRA (TL)from one of the Paragraph Description fieldviews.
To select these custom paragraphs to print for all clients when applicable, choose Setup and then 1040 Individual, select the Letters & Emails button in the Federal tab, select the Custom Paragraphs tab, and mark the box for the appropriate paragraph. For additional information, see Custom paragraph FAQs.
State
See State fields in UltraTax CS for more information.
EIN
Enter the EIN of the Health or Medical Account Trustee. One Form 8889 is required for each HSA account, and one Form 8853 is required for each MSA account. Contributions entered on the 5498SA screen and distributions entered on the 1099SA screen for the same account must have matching EIN numbers to be reported on the same form. If there is more than one 5498-SA for a single account, sum the amounts and enter on one 5498-SA screen.
Trustee Name
This field is mandatory.
Fields not used in tax preparation
The fields that have a plus sign (+) at the end of the field name are not used in the tax return, but are available for the Data Mining feature in the tax application. You do not need to enter information in fields marked with a plus sign unless the data in the field will be used for data mining purposes. Data will be shared to these fields from the Source Data Entry utility.
HSA (Form 8889) / Archer MSA (Form 8853) / Medicare Advantage MSA (Form 8853)
Indicate the type of health or medical account that is being reported by placing an
X
in the appropriate box. You must select one of these options.note
Medicare Advantage MSA contributions are not tax deductible. Contribution information entered for a MA MSA will not transfer to the tax return, but will be available for data mining. However, the
Amount of annual deductible
field on the 5498SA screen may be required to calculate any penalty on excess distributions.Total HSA/MSA contribution for
2025
Enter the total health or medical account contributions, including those make through employer cafeteria plans, for
2025
, including those 2025
contributions made between 1/1/2026
and 4/18/2026
. Include employer contributions and qualified HSA funding distributions from an IRA.Do not include rollovers. Contributions in excess of the calculated allowable deduction will be reported on Form 5329, Additional Taxes on Qualified Plans and other Tax-Favored Accounts. Additional data entry is available in the 5329 screen.
note
- When data is entered in the Have program compute maximum allowable deduction field, data in this field will be reported in the Health Savings Account (TL) or Medical Savings Account (TL) custom paragraph as the amount already contributed. The custom paragraph will indicate the additional amount that must be contributed by the due date of the return if the amount already contributed is less than the maximum allowable contribution.
- UltraTax CS automatically subtracts any employer contributions reported on the W2 screen, box 12, and any qualified HSA funding distributions reported on the 1099R-3 screen to calculate the taxpayer contributions on Form 8889, line 2. To force a different amount, use the Taxpayer contributions for2025(Force) field.
- When entering a Form 5498-SA via the Source Data Entry module, UltraTax CS datashares the amount in Box 1 if the account is a MSA, or the sum of the amounts in Boxes 2 and 3 if the account is an HSA.
- If the only contributions are employer contributions on the W2 screen, box 12, code W, also enter the employer contributions in the 5498SA screen in theTotal HSA/MSA contributions forfield. Mark the2025HSA (Form 8889)box, select an option in theIndicate the type of coverage...field, and complete theNumber of months in qualified high deductible health planfield.
FMV of HSA, Archer MSA, or MA MSA
This amount is used on Form 5329, if necessary, to calculate any additional tax on excess contributions.
Indicate type of coverage under qualifying high deductible health plan
Enter
1
to designate that the taxpayer's coverage under the high deductible health plan (HDHP) is self-only coverage. Enter 2
to designate that the taxpayer's coverage under the high deductible health plan is family coverage. To be a qualifying HDHP, the annual deductible must be within IRS thresholds. For Health Savings Accounts, the self-only coverage deductible must be at least $1,400 and out-of-pocket expenses cannot exceed $7,050. The family coverage deductible must be at least $2,800 and out-of-pocket expenses cannot exceed $14,100. For Medical Savings Accounts, the self-only coverage deductible must be at least $2,450 but no more than $3,700. The family coverage deductible must be at least $4,950 but no more than $7,400. If the taxpayer was covered by one plan during part of the year and another plan during the remainder of the year, enter the code corresponding to which plan was in effect for the longest period.note
If filing married filing jointly, and either spouse has family coverage under a HDHP, both are treated as having family coverage.
Number of months...
Enter the number of months in the high deductible health plan in
2025
. Do not include any months for which the participant was enrolled in Medicare. If the beneficiary begins HDHP coverage mid-month, they become an eligible individual on the first day of the following month.Have program compute maximum allowable contribution
Mark this box if the taxpayer would like to make the maximum allowable HSA or MSA contribution, or if it is not known what the maximum allowable contribution should be on Form 8853 or Form 8889. Indicate the type of savings account, the
Number of months
in qualified high deductible health plan, and select a coverage in the Indicate type of coverage under qualifying high deductible health plan
field. For an Archer MSA, additional information regarding the amount of the deductible and compensation or earned income is needed in the Form 8853 - Medical Savings Account data entry section. UltraTax CS automatically calculates the maximum allowable deduction and prepares Form 8853 or 8889 accordingly. If the field Total contributions made for 2025
shows contributions in excess of the maximum allowable contribution, the excess contribution amounts will calculate and automatically transfer to Form 5329.note
When the option is selected to
Have program compute maximum allowable contribution,
any data in the Total contributions made for
field will be reported in the Health Savings Account (TL) and Medical Savings Account (TL) custom paragraph as the amount already contributed. The custom paragraphs will indicate the additional amount that must be contributed by the due date of the return if the amount already contributed is less than the maximum allowable contribution.2025
Total HSA/MSA contribution to be made for
2025
If additional contributions will be made to this MSA or HSA account for
2025
, enter the total amount of all contributions for the year in this field. Do not include any excess contributions from a prior year taken as constructive contributions for 2025
. UltraTax CS will calculate Form 8853 or Form 8889 using this amount instead of the amount entered in Total HSA/MSA contributions for
.2025
note
When an amount is entered in the
Total HSA/MSA contribution to be made for
field, any data in the 2025
Total contributions made for
field will be reported in the Health Savings Account (TL) and Medical Savings Account (TL) custom paragraph as the amount already contributed. The custom paragraphs will indicate the additional amount that must be contributed by the due date of the return if the amount already contributed is less than the amount entered here.2025
HSA/MSA limitation (Force)
UltraTax CS automatically calculates the HSA or MSA limitation using amounts entered in
Amount of annual deductible
and Number of months in high deductible health plan
fields. For MSA accounts, UltraTax CS uses the limitation percentage of 65 percent for self-only coverage and 75 percent for family coverage to calculate limitation amount. An amount entered in this field overrides the calculated amount.note
- For married filing separate returns with family coverage, the amount is limited to 50 percent of the calculated limitation amount.
- If there are multiple units for the taxpayer or spouse, the contribution limit is divided per the units. For example, if there are two units for the taxpayer and both are coded as self-only, then the limitation on each unit is $1,775 ($3,550 divided by 2). If this division does not work for your specific situation, use this field to force the limitation on Form 8889, line 3.
Excess contributions for
2024
taken as constructive contributions for 2025
An excess contribution for a prior year can be left in an MSA or HSA and taken as a deduction for the current year provided it does not exceed the lesser of:
- the maximum allowable contribution minus any contributions made for the year, or
- the excess contribution for the prior year minus any current-year distributions.
If a prior-year excess contribution is going to be taken as a constructive contribution, enter the amount in this field. UltraTax CS will add the constructive contribution to Form 8853, line 5 or Form 8889, line 13.
Form 8853 - Medical Savings Account
See Form 8853 instructions for further details.
Amount of annual deductible
Enter the amount of the annual deductible for the high deductible health plan. For Medical Savings Accounts, the self-only coverage deductible must be at least $2,450 but no more than $3,700. The family coverage deductible must be at least $4,950 but no more than $7,400.
Employer maintaining high deductible plan
If there is an employer-maintained high deductible health plan, select the employer in this field. (The list of employers in this field automatically generates based on the W-2s entered for the taxpayer or spouse specified in this screen.) The wages transfer from the W-2 to Form 8853, line 4. For participants in an employer-maintained high deductible health plan, an entry in this field or the
Compensation from employer maintaining high deductible plan (Force)
field is mandatory.Compensation from employer maintaining high deductible plan (Force)
Use this field to override (force) the calculated amount for the employer entered in the
Employer maintaining high deductible plan
field. For participants in an employer-maintained high deductible health plan, an entry in this field or the Employer maintaining high deductible plan
field is mandatory.Self-employed activity form & unit#
If there is self-employment income, enter the form and unit number of the related activity. UltraTax CS transfers the net self-employment income from the related activity under which the plan was established. This field is mandatory for self-employed individuals.
Earned income from activity... (Force)
Use this field to override (force) the calculated amount for the activity entered in the
Self-employed activity form & unit #
field.Form 8889 - Health Savings Account
See Form 8889 instructions for further details.
HDHP in effect for December
Enter
1
to designate that the coverage under the high deductible health plan was in effect for the month of December, 2025
. Enter 2
to designate that the high deductible health plan was ended before December 31, 2025
. If coverage was in effect for December, the annual HSA contribution limit is not reduced by the number of months of part-year coverage. This field is required only if the Number of months in qualified high deductible health plan
is less than 12.Taxpayer contributions for
2025
(Force)UltraTax CS calculates total taxpayer contributions to an HSA by taking the amount entered in the
Total HSA/MSA contributions for
field and subtracting any employer contributions from the W-2 screen, box 12 and any qualified funding distributions from the 1099R screen. This amount is carried to Form 8889, line 2. Use this field to enter a different amount, if desired.2025
Form 8889, line 6 (Force)
If both spouses each have separate HSAs and both health plans are designated as having family coverage, UltraTax CS automatically divides the contribution limit calculated on line 5 equally between the spouses. The IRS allows any division of the contribution limit agreed upon by the spouses. If the taxpayer's coverage changes in mid-year due to divorce, see the Form 8889 instructions to calculate the contribution limit, then enter that amount in this field. Any other agreed-upon division can also be entered.
Employer contributions (Force)
UltraTax CS uses amounts entered on the W2 screen, box 12 coded W to determine employer contributions to an HSA. If these amounts contain employer contributions for a year other than
2025
, use this field to enter the employer contributions that were made for 2025
. In addition, if the W-2 is for a greater than 2 percent shareholder, use this field to force employer contributions to zero, and use the Taxpayer contributions for
field to enter the taxpayer's deductible contribution.2025
(Force)