topic Re: Can I be reimbursed from HSA for eligible medical expenses incurred after HSA established but... in Deductions & credits

Can I be reimbursed from HSA for eligible medical expenses incurred after HSA established but before funded?

daveof203 — Thu, 19 Mar 2020 19:59:17 GMT

Opened an HSA in December 2019. Incurred and paid $1,000 in eligible medical expenses in Jan and Feb 2020. Funded the HSA in March 2020 with $3,000. Looking to now distribute $1,000, but want to be sure there will not be any taxes or penalty on the $1,000 distribution when filing 2020 federal taxes next year.

Re: Can I be reimbursed from HSA for eligible medical expenses incurred after HSA established but...

MinhT1 — Thu, 19 Mar 2020 20:14:05 GMT

Distributions from a HSA are compared with medical expenses for the whole year in 2020. In your case, there will not be any tax or penalty on the distribution in 2020.

Re: Can I be reimbursed from HSA for eligible medical expenses incurred after HSA established but...

daveof203 — Thu, 19 Mar 2020 21:06:06 GMT

Thank you for your response. So, even though the HSA was FUNDED after these medical expenses were incurred, it would not matter?

Re: Can I be reimbursed from HSA for eligible medical expenses incurred after HSA established but...

JohnB5677 — Thu, 19 Mar 2020 21:24:19 GMT

An HSA's establishment date is key. While you can wait years to reimburse a medical expense, the expense must have incurred after the HSA's establishment date. That means you cannot use the plan for expenses prior to the establishment date.