How do I determine the establishment date of my Health Savings Account?

[sd_mustang]

I have held a Health Savings Account for years and have made several health-related payments that were later reimbursed from my HSA. I am aware that distributions for expenses incurred after the HSA was established are not subject to taxation and that state law determines when an HSA is established (i.e. upon opening of the account or when funds are first deposited into the account).

I live in South Dakota, though I don't know if it would be my state of residence that is the relevant factor or if the state of the HSA custodian is considered in determining the HSA establishment date. If the latter is true, I'd note that my HSA was transferred from one bank to another last year. I, therefore, do not know whether to consult my current HSA custodian's trust agreement or my former HSA custodian's trust agreement (if I can locate it) to determine the date of establishment!

[Critter]

Why do you need that info ?  For what purpose ?

[sd_mustang]

I was reimbursed from my HSA for expenses that were incurred after my HSA was opened but before the first contribution was made to the account. If the account is considered established when the account is funded, I may need to repay or otherwise correct the mistaken distributions.

[Critter]

You had an HSA and transferred it to a new custodian and then added more to the account ... for tax purposes the HSA is one account so you will use the date the first account was opened.

[dmertz · Accepted solution]

An HSA is a trust.  Although I don't know specifically about South Dakota law, in most states a trust is considered established on the date when funds are first placed in the trust.  In the case of an HSA, the establishment date would then be the date on which the first deposit was made to the HSA account of an HSA-eligible individual.

A transfer of the HSA does not change the establishment date for your HSA.  The establishment date of the original HSA carries over to the new HSA.

[dmertz]

This would mean that your medical expense incurred before the date on which you first made a contribution (or a contribution was made on your behalf) to the HSA would *not* be a qualified medical expense.  [Edited to change the word "paid" to "incurred."]