Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Can you use health savings accounts retroactively?
Old 04-13-2013, 11:27 PM   #1
Confused about dryer sheets
 
Join Date: Apr 2013
Posts: 3
Can you use health savings accounts retroactively?

I plan on opening one of these next week. I also filed a tax extension for this year. I was told that I could contribute to the HSA for last year as long as it is established by the tax due date (which will be October 15 with the extension).

My question is this. I have some medical bills from December and also from July of last year. If I contribute to last year's HSA...can I pay those bills with that money?

I know if the bills were from say...2010...that I could not use a HSA to pay for them. However, if I contribute to last year's HSA...doesn't that technically make me covered under the entire year?
__________________

__________________
mjr24 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-13-2013, 11:54 PM   #2
Recycles dryer sheets
 
Join Date: Jul 2004
Posts: 430
According to the following IRS publication, only expenses incurred after the establishment of the HSA can be reimbursed.

I'd read the following, starting with page 2, it says it all:

http://www.irs.gov/pub/irs-pdf/p969.pdf
__________________

__________________
gindie is offline   Reply With Quote
Old 04-14-2013, 12:21 AM   #3
Confused about dryer sheets
 
Join Date: Apr 2013
Posts: 3
Your post really doesn't help. I had previously read that publication and it's obvious I need a better interpretation than it gives.
__________________
mjr24 is offline   Reply With Quote
Old 04-14-2013, 05:58 AM   #4
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,408
I agree with gindie. From IRS pub 969, page 8

Quote:
For HSA purposes, expenses incurred before you establish your HSA are not qualified medical expenses. State law determines when an HSA is established.
If the HSA hasn't been set up the expenses are not qualified.
__________________
MichaelB is offline   Reply With Quote
Old 04-14-2013, 08:01 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,925
I'm voting w/ you 2 but I like this quote even better (from the same place right after yours) since it deals w/ retroactivity:

http://www.irs.gov/pub/irs-pdf/p969.pdf

""If, under the last-month rule, you are considered to be an eligible individual for the entire year for determining the contribution amount, only those expenses incurred after you actually establish your HSA are qualified medical expenses."

also these: http://www.google.com/#hl=en&gs_rn=9...w=1024&bih=625

which restates again the relation to state law (which OP hasn't revealed) and the fact that most go by funding date.
__________________
kaneohe is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 11:36 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.