New forms for MSA and SIMPLE plans.
The Health Insurance Portability and Accountability Act of 1996 allowed individuals to establish MSAs and required any person paying LTC or accelerated death benefits to report the aggregate benefits paid. To carry out the provisions of the new law, the IRS developed four new forms:
* Form 1099-MSA, Distributions From Medical Savings Accounts, for trustees to report MSA distributions.
* Form 5498-MSA, Medical Savings Account Information, for trustees to report MSA contributions.
* Form 8851, Summary of Medical Savings Accounts, for trustees to report the number of MSAs established.
* Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, for insurance companies and other payers to report aggregate benefits paid and other information.
No new forms are required for trustees to report distributions and contributions related to SIMPLE plans; however, trustees must report distributions and contributions on revised forms 1099-R and 5498.
All the forms discussed above can be downloaded from the IRS's Web site at http://www.irs.ustreas.gov. Printed copies of forms 1099-R and 5498 can be obtained by calling 800-829-3676.
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|Title Annotation:||medical savings accounts, Savings Incentive Match Plans for Employees of Small Employers|
|Publication:||Journal of Accountancy|
|Article Type:||Brief Article|
|Date:||Jul 1, 1997|
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