I view my HSA as yet another opportunity to save money, get a deduction and have the earnings be tax free similar to a Roth IRA except there are no earnings restrictions and I need to spend the money on health care expenses.........
I did not know that one could draw against HSA for past expenses.... I may eventually access it by pulling out my then yellowed receipts for dental care and other incidentals I have paid cash for over the years to withdraw it tax free then.
As long as the HSA account was opened before the expenses were incurred.I did not know that one could draw against HSA for past expenses.
I thought it had to be for current year's expenses. Oh, all the things I have learned from this forum.
+1Whether it is of great benefit to you will obviously depend on your own situation, but for me as an early retiree who is has no healthcare expenditures, it is a nice little deduction..
I did not know that one could draw against HSA for past expenses.
I thought it had to be for current year's expenses. Oh, all the things I have learned from this forum.
What if you'd already deducted them as medical expenses on your tax return? That would be double-dipping.As long as the HSA account was opened before the expenses were incurred.
The instructions for form 8889 prevent the double dipping.What if you'd already deducted them as medical expenses on your tax return? That would be double-dipping.
Since when I take my distributions my taxes for the year of the expense will have been long since filed, I read this the inverse way, that I can't include on line 15 (Unreimbursed qualified medical expenses) any thing that has been deducted on Schedule A.You cannot take a deduction on
Schedule A (Form 1040) for
any amount you include on
line 15
I keep a shoe box of all medical receipts since I opened the HSA. On the front page of each I add a code with red marker of year-##, like 2013-01 for the first receipt of the year, 2013-02 for the second, etc.
I also record each expense including the code in a spreadsheet. This makes it easy to keep track of my expenses, know whether I've got each recorded, and to know that I have a receipt for each recorded expense.
For mileage I just record the destination/purpose and miles along with the rate for that year. I've just realized I should correlate those with the receipts, like maybe 2013-01m, but since I put the name and the date I don't think it'll be that hard. Plus, I have some mileage for things fully covered, like dental checkups, so there is no receipt to go with it.
When I start taking money out, I'll record that on the spreadsheet as well, but I'm letting it grow tax free for now.
I doubt I'll get audited but it's good to know I've got the records to back up withdrawals when I need them. Otherwise, I could be taxed for taking non-medical withdrawals.
It's a bit of work but not that much if you keep things organized. Considering the original tax credit, tax-free growth, and tax-free withdrawals for allowable medical expenses, and it adds up very nicely.
Would someone who has an HSA with vanguard comment on the convenience in terms of paying for service from the account?
I read about HSA accounts, but it seems more hassle than what it's worth.
If anyone is using HSA, could you please extol its benefits? Thank you.
Name one other plan that has the triple threat of contribution deductible, earnings tax deferred, and withdrawals tax free.
Not to be picky, but you meant treat, right?Name one other plan that has the triple threat of contribution deductible, earnings tax deferred, and withdrawals tax free.
We have had an HSA policy for the past couple of years because it is way cheaper than the other option we had.
That said - I don't use the HSA part of it. The reason is that we max out our family out of pocket each year (mostly due to some meds our kids take). HSA accounts always seemed more advantageous to me for people who weren't going to be using the money in the HSA for years. In our case we are already withdrawing from DH's IRA (he is retired for 3 years now) so contributing to an HSA would mean withdrawing more money from the IRA and paying taxes on it just so we could then put it in the HSA.