Can I Pay 2018 Bills with 2019 HSA? - Everything You Need to Know

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HSA question: paying prior-year bills

When it comes to managing your HSA (Health Savings Account), you may have questions about paying bills from different years. One common query that many HSA account holders have is: Can I pay 2018 bills with my 2019 HSA funds? Let's delve into the details to understand how HSAs work and what rules apply.

HSAs are a smart way to save for medical expenses while enjoying tax advantages. However, there are rules governing HSA contributions and withdrawals. Here's what you need to know:

Rules for qualified expenses and reimbursement

• You can only use HSA funds to pay for qualified medical expenses.
• Qualified medical expenses include a wide range of healthcare services and products.
• Unused HSA funds roll over from year to year, allowing you to save for future medical expenses.
• While you can reimburse yourself for qualified expenses at any time, the expenses must have occurred after you opened the HSA.
• If you paid a qualified medical expense in 2018, you can reimburse yourself from your 2019 HSA funds in 2019.

Conclusion for 2018 bills with 2019 funds

Therefore, yes, you can pay 2018 bills with your 2019 HSA as long as the expenses are qualified medical expenses that occurred after you opened the HSA. It's essential to keep accurate records and receipts to ensure compliance with IRS regulations.

Managing your HSA (Health Savings Account) can sometimes feel confusing, especially when it comes to expenses incurred in previous years. If you're wondering if you can reimburse yourself for 2018 medical bills using your 2019 HSA funds, the answer is yes, provided those expenses were for qualified medical services and happened after your HSA was opened.