Can I Use HSA to Pay Previous Year Expenses? | HSA Awareness Blog

One common question people have about Health Savings Accounts (HSAs) is whether they can use their HSA funds to pay for expenses from the previous year. The short answer is no, you cannot use your HSA to pay for expenses that you incurred in a previous year.

HSAs are designed to help individuals save and pay for current and future medical expenses. The IRS regulations state that HSA funds can only be used to pay for qualified medical expenses that occur after the HSA account is established.

However, there are some exceptions to this rule:

• If you paid for a medical expense out of pocket in a previous year and you were not reimbursed at that time, you can use your HSA to reimburse yourself in the current year. Make sure to keep proper documentation of the expense and the reimbursement from your HSA.
• If you had a qualified medical expense in a previous year but did not have an HSA at that time, you can still use your HSA to pay for that expense as long as the expense meets the IRS guidelines.

It's important to keep accurate records of your medical expenses and HSA transactions to ensure compliance with IRS rules and to avoid any potential penalties.

Many people wonder about the possibility of using their Health Savings Accounts (HSAs) to cover medical expenses from the previous year. Unfortunately, the straightforward answer is no; HSAs are intended for current and future medical expenses only.