Can I Use My New HSA to Pay for 2017 Expenses I Haven't Paid Yet?

If you're wondering whether you can use your new HSA to cover expenses from 2017 that you haven't paid yet, the short answer is no. Health Savings Accounts (HSAs) are designed for qualified medical expenses incurred after the HSA was established. Here are some key points to consider when it comes to using your HSA:

• Your HSA contributions can only be used for medical expenses that occurred after the HSA was opened.
• If you incurred medical expenses in 2017 but opened your HSA in 2018, you can't use the HSA funds to pay for those previous expenses.
• However, you can save your receipts and reimburse yourself from your HSA at any time in the future as long as the expenses were incurred after the HSA was established.
• HSA funds roll over from year to year, so you can keep accumulating funds and using them for future qualified medical expenses.

It's important to keep track of your medical expenses and save your receipts to ensure you are using your HSA funds appropriately. If you have any questions about eligible expenses or how to use your HSA, consult with a financial advisor or tax professional for guidance.

Many people ask if they can use their new HSA to cover medical expenses from past years, like 2017. Unfortunately, the answer is no. Health Savings Accounts (HSAs) are intended to be used for medical expenses that occur after the account is established. Here’s what you need to know:

• Any contributions to your HSA can only be utilized for qualified medical expenses that were incurred after your account was opened.
• So, if you had expenses back in 2017 but didn’t create your HSA until 2018, those expenses won’t be eligible for coverage.
• On the plus side, you can save all your medical expense receipts and reimburse yourself in the future as long as those expenses were incurred after your HSA’s opening date.
• Remember too that HSA funds do not expire; they roll over from year to year, allowing you to build savings for future medical needs.

It’s crucial to keep a close eye on your medical expenses and maintain those receipts. If you're ever uncertain about the rules for eligible expenses or how to effectively utilize your HSA, reaching out to a financial advisor or tax professional can provide clarity.