Can I Use HSA Funds for Charges Incurred Last Year? - Understanding HSA Rules

It's a common question among HSA account holders: can I use HSA funds for charges incurred last year? Let's dive into the details of how Health Savings Accounts (HSAs) work and understand the rules surrounding the use of HSA funds.

HSAs are a valuable tool for managing healthcare expenses, allowing individuals to save money for qualified medical costs while enjoying tax benefits. However, there are specific guidelines regarding the timing of using HSA funds.

Here's what you need to know:

• HSA funds can be used for eligible medical expenses incurred after you open your HSA, even if they occurred in a previous year.
• There is no time limit on when you can reimburse yourself from your HSA for qualified expenses.
• Keep all receipts and documentation of medical expenses to substantiate the withdrawals from your HSA in case of an IRS audit.
• While there is no restriction on using HSA funds for expenses from a previous year, the expenses must have occurred after you established your HSA.

It's essential to keep track of your healthcare expenses and understand the rules governing HSA withdrawals to make the most of your HSA funds.

Many people often ask whether they can tap into their HSA funds for medical charges that occurred last year. The answer is more straightforward than it may seem! Understanding how HSAs operate allows you to maximize your savings and manage healthcare costs effectively.