Can I Use My 2018 HSA Funds for a 2017 Bill?

Many individuals wonder whether they can use their 2018 Health Savings Account (HSA) funds to pay for a bill from the previous year, such as a 2017 expense. The answer to this question is straightforward - unfortunately, you cannot use your 2018 HSA funds for a 2017 bill.

HSAs operate on a calendar year basis. This means that the funds deposited into your HSA each year are intended for expenses incurred during that specific year. Therefore, any bills from previous years, such as 2017, are not eligible for payment using your current year's HSA funds.

It's essential to keep track of your HSA expenses and ensure that you are using the funds correctly to avoid any tax implications or penalties. If you have a bill from 2017 that needs to be paid, you will need to find another source of funds to cover that expense.

It’s a common scenario where people might be tempted to use their current year's Health Savings Account (HSA) funds for past medical bills, such as those incurred in 2017. However, it's important to understand that HSA funds are designated for expenses incurred in the same calendar year. Thus, using your 2018 HSA funds for any unpaid bills from 2017 is against the rules.