HSA Guide
Can You Use HSA for Last Year Expenses?
Published February 2, 2023
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Get the appShort answer: You can reimburse last year’s medical expenses from your HSA only if your HSA account was open when the expense occurred; keep documentation.
Using HSA for prior-year medical expenses
Many people wonder if they can use their HSA for last year expenses. The answer to this question depends on several factors, including the timing of the expense and your HSA account status.
Here are some key points to consider:
Rules for reimbursement timing and documentation
- You can use your HSA funds for eligible medical expenses incurred after you open your HSA account.
- If you had the HSA account open at the time of the medical expense, you can reimburse yourself from the HSA at any time, even if the expense was from the previous year.
- However, if you did not have the HSA account when the expense occurred, you cannot use HSA funds to reimburse that expense.
- It's essential to keep proper documentation of the expenses you plan to reimburse with your HSA funds, including receipts and invoices.
HSA rollover means funds persist
Remember that HSA funds roll over from year to year, so you can save them for future medical expenses and use them when needed.
Many individuals often ponder whether they can utilize their HSA for expenses incurred in the previous year. It's a common inquiry, and the response largely hinges on a few crucial factors, such as when you sustained the expense and the status of your HSA account at that time.