turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

daveof203
Returning Member

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

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.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
MinhT1
Expert Alumni

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

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
daveof203
Returning Member

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

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

JohnB5677
Expert Alumni

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

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies