Can You Take Money from HSA for Last Year Expenses?

HSAs, or Health Savings Accounts, are a great way to save for medical expenses tax-free. One common question that many people have is whether they can use funds from their HSA for expenses incurred in previous years. The short answer is yes, you can use money from your HSA for last year's expenses as long as the expense was a qualified medical cost and you had the HSA established at the time the expense was incurred.

Here are some important points to consider regarding using HSA funds for last year's expenses:

• Qualified Expenses: The expense must be a qualified medical cost as defined by the IRS, such as doctor's visits, prescription medications, and certain medical supplies.
• Timing: You can only use HSA funds for expenses that were incurred after you established the HSA. If you had the HSA at the time of the expense, you can reimburse yourself from the account at any time, even in a later year.
• Documentation: It's important to keep detailed records and receipts of all expenses paid for with HSA funds, including those from previous years, to ensure compliance with IRS regulations.
• Reimbursement: You can reimburse yourself from your HSA for qualified expenses at any time, as long as the expense was incurred after the HSA was established. This provides flexibility in using your HSA funds for past expenses.

HSAs offer a convenient way to save for healthcare costs and provide flexibility in using funds for qualified medical expenses. By understanding the rules and guidelines for using HSA funds, you can make the most of this valuable savings tool.

Did you know that Health Savings Accounts (HSAs) not only help you save on current medical expenses tax-free but also allow for reimbursements of last year's qualified expenses? This means that if you encountered any eligible medical costs last year, you can tap into your HSA funds to cover those expenses, provided your account was already established at that time.