Can I Pay 2017 Bills Before I Opened HSA in December 2017?

Many people wonder whether they can pay bills from the previous year before they officially open a Health Savings Account (HSA). This is a common question, especially for those who are new to HSAs and are exploring the benefits they offer. The answer to this question depends on certain factors and guidelines.

When it comes to paying bills prior to opening an HSA in December 2017 for the expenses incurred in the same year, the following points are essential to consider:

• Eligibility: You must meet the eligibility criteria to open an HSA, including having a high-deductible health plan.
• Timing: HSA contributions made within the tax year can be used for eligible expenses incurred throughout the year, even if the account was opened late in the year.
• Pro-rated Contributions: Contributions can be pro-rated based on the number of months the HSA was active in the tax year.
• Documentation: Keep detailed records and receipts of expenses paid before the HSA was opened to justify withdrawals.

In summary, it is possible to pay bills from the previous year before opening an HSA in December 2017, as long as you adhere to the guidelines and eligibility requirements set forth by the IRS.

It's a commonly asked question: can you settle bills from the year before opening your HSA? If you opened your Health Savings Account in December 2017, the good news is that you can pay for qualified expenses incurred in 2017, provided you meet HSA eligibility criteria, including having a high-deductible health plan.