Can I Use 2018 HSA for 2017 Expenses? - Understanding HSA Rules and Benefits

Many people wonder if they can use their 2018 HSA funds for expenses incurred in 2017. The answer to this question lies in understanding the rules and guidelines of a Health Savings Account (HSA).

An HSA is a tax-advantaged account that is used to save and pay for qualified medical expenses. It is typically paired with a high-deductible health insurance plan. Here are some important points to consider:

• Contributions to an HSA are tax-deductible
• Withdrawals for qualified medical expenses are tax-free
• HSA funds can be carried over from year to year

However, when it comes to using HSA funds for previous year expenses, there are specific rules:

• HSA funds can only be used for expenses that occur after the HSA was established
• Expenses incurred before opening an HSA are not eligible for reimbursement
• You can reimburse yourself for expenses paid out of pocket once your HSA is established

So, in short, you cannot use your 2018 HSA funds for expenses that occurred in 2017. It is essential to keep accurate records of your medical expenses and only use HSA funds for qualified expenses that occur after your account is opened.

Many individuals often find themselves asking, 'Can I use my 2018 HSA funds to cover expenses from 2017?' To navigate this question, it's crucial to grasp the fundamentals of a Health Savings Account (HSA).