Can I Use My HSA Funds to Pay Bills for Services Incurred Prior to the Plan Year?

Understanding how Health Savings Accounts (HSAs) work can be confusing, but here's some good news - you can use HSA funds to pay bills for services incurred prior to the plan year!

HSAs are a great way to save for medical expenses while enjoying tax advantages. But what happens if you had to pay for medical services before you opened your HSA? Rest assured, you can still use your HSA funds to cover those expenses.

Here's how:

• As long as the medical expenses were incurred after your HSA was established, you can use your HSA funds to pay for them.
• You can reimburse yourself from your HSA for qualified medical expenses that were incurred after your HSA was opened, even if you paid for them out-of-pocket before you had the HSA.
• It's important to keep good records and receipts to prove that the expenses were paid and they qualify as HSA-eligible expenses.

Did you know that as long as your Health Savings Account (HSA) was established prior to the medical expenses you incurred, you can use those HSA funds to settle those bills? It's a tax-efficient way to manage your healthcare costs.