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Can you use health savings accounts retroactively?
Old 04-13-2013, 10:27 PM   #1
Confused about dryer sheets
Join Date: Apr 2013
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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?

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Old 04-13-2013, 10:54 PM   #2
Recycles dryer sheets
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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:

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Old 04-13-2013, 11:21 PM   #3
Confused about dryer sheets
Join Date: Apr 2013
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Your post really doesn't help. I had previously read that publication and it's obvious I need a better interpretation than it gives.
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Old 04-14-2013, 04:58 AM   #4
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I agree with gindie. From IRS pub 969, page 8

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.
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Old 04-14-2013, 07:01 AM   #5
Thinks s/he gets paid by the post
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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:

""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:

which restates again the relation to state law (which OP hasn't revealed) and the fact that most go by funding date.
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