Can I Withdraw Money for Last Year's Medical Expense This Year from my HSA?

As a curious HSA account holder, you may wonder about withdrawing money for last year's medical expenses in the current year from your HSA. The good news is that yes, you can reimburse yourself for qualifying medical expenses incurred in previous years, including the previous year, from your HSA funds.

Here are some key points to keep in mind:

• HSAs offer a unique advantage of allowing you to carry forward your unused funds to the next year, unlike FSAs that have a 'use it or lose it' rule.
• There is no time limit on when you can reimburse yourself for past medical expenses as long as the expenses were incurred after you established your HSA.
• It's important to keep all your receipts and documentation to substantiate the withdrawals for previous year's medical expenses from your HSA.
• When you withdraw HSA funds for past medical expenses, it's crucial to ensure that the expenses qualify as IRS-approved medical expenses.
• Consulting with a tax professional or financial advisor can provide you with more guidance on utilizing your HSA for previous year's medical expenses.

So, in conclusion, leveraging your HSA to reimburse yourself for past medical expenses, including those from the previous year, can be a convenient way to manage your healthcare costs and maximize the benefits of your HSA.

If you're sitting on an HSA and are wondering whether you can dip into those funds for medical expenses from last year, the answer is a resounding yes! HSAs allow you to reimburse yourself for qualified medical expenses incurred in previous years, including the last year, giving you flexibility and peace of mind when managing your health costs.