Can I Pay Bills in 2019 for Medical Costs in 2018 from My HSA per the IRS?

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When HSA can cover prior-year medical costs

If you're wondering whether you can pay bills in 2019 for medical costs incurred in 2018 from your Health Savings Account (HSA), the answer is not as straightforward as one might think. According to IRS guidelines, HSA funds can be used to pay for qualified medical expenses that occurred after the HSA was established. However, there are some exceptions and rules to consider.

Firstly, the IRS allows HSA account holders to use their funds to pay for qualified medical expenses that were incurred after the HSA was established. This means that if you incurred medical costs in 2018 but your HSA was established in 2019, you would not be able to use your HSA funds to pay for those expenses.

If you're curious about using your Health Savings Account (HSA) to pay 2019 medical bills for treatments or consultations conducted in 2018, it's essential to understand the regulations set forth by the IRS. Generally, HSA funds can only be allocated to medical expenses that occurred after your account was opened.

Exceptions and recordkeeping rules

However, there are exceptions to this rule. You may be able to use your HSA funds to pay for medical expenses that were incurred in the previous year if:

• The medical expenses were incurred within 60 days of the HSA being established.
• You had an HSA in the previous tax year and maintained it for the entire year.

It's important to keep detailed records of your medical expenses and HSA transactions to ensure compliance with IRS regulations. If you have any doubts about using your HSA funds for medical expenses from a previous year, it's best to consult a tax professional for guidance.