Can You Pay Past Year Medical Expenses from Current HSA?

One common question that many individuals have regarding Health Savings Accounts (HSAs) is whether they can use the funds to pay for medical expenses incurred in past years. The short answer is, yes, you can use your current HSA to pay for eligible medical expenses from previous years.

HSAs are designed to be a long-term savings tool for healthcare expenses, allowing you to contribute pre-tax dollars that can be used for qualified medical costs. Here's how you can use your HSA to cover past year medical expenses:

1. Retain all your receipts: Keep track of all your medical expenses, including receipts from previous years.
2. Contribute to your HSA: Ensure you have sufficient funds in your HSA to cover the past medical costs.
3. Reimburse yourself: Withdraw the necessary amount from your HSA to reimburse yourself for the past year's medical expenses.
4. Record-keeping: Maintain accurate records of the reimbursement for tax purposes.

It's important to note that you can only use your HSA to cover medical expenses that occurred after you opened the account. However, you can save your receipts and reimburse yourself at a later date, including using current HSA funds for past expenses as long as the expenses were incurred after the HSA was established.

By utilizing your HSA for past medical expenses, you can take advantage of the tax benefits and flexibility that these accounts offer. Make sure to consult with a tax professional or financial advisor for personalized guidance on managing your HSA funds.

Many people often wonder if they can tap into their Health Savings Account (HSA) to pay for medical costs from previous years. The great news is that you absolutely can! If you have accumulated eligible medical expenses from past years, your HSA can come to the rescue.