Can I Reimburse Myself with HSA Money in 2019 for an Expense from 2018?

If you had a qualifying high deductible health plan in 2018 and established a Health Savings Account (HSA), you may be wondering if you can still reimburse yourself with HSA funds in 2019 for an expense incurred in 2018. The answer to this question lies in the IRS guidelines regarding HSA reimbursements.

Typically, the IRS allows HSA owners to reimburse themselves for eligible medical expenses that were incurred after the HSA was established. However, there is a provision called the 'testing period' that can help you reimburse expenses from the previous year.

The testing period allows HSA owners to make distributions for qualified medical expenses dating back to the date the HSA was established. This means that if you opened your HSA in 2018, you can reimburse yourself for expenses incurred in 2018 even in 2019, given that you keep the receipts as documentation.

It's important to note that the testing period applies to all qualified medical expenses, not just those that occurred after the HSA was opened. As long as the expense would have been considered eligible on the day the HSA was established, it can be reimbursed during the testing period.

Key Points:

• HSA owners can reimburse themselves for medical expenses incurred after the HSA was opened.
• The testing period allows reimbursement for expenses from the year the HSA was established.
• Keep receipts as documentation for all reimbursements, including those from prior years.
• Consult with a tax professional or financial advisor for specific guidance on HSA reimbursements.

If you had a qualified high deductible health plan in 2018 and set up an HSA, you might be curious whether you can utilize your HSA funds in 2019 to cover expenses from 2018. Well, the good news is that you likely can! According to IRS regulations, as long as you maintain proper documentation, you’re allowed to reimburse yourself for eligible medical costs incurred during that previous year.