HSA Rules Question

[Donno]

I'm having a problem finding out an answer to a simple question about withdrawing funds from my HSA. If I make a withdrawal after age 65, say in January, I can apply future medical expenses throughout that year for it to be tax-free, or is it only for previous expenses? It's a simple question, I just can't find the answer.

 

[MichaelB]

I'm having a problem finding out an answer to a simple question about withdrawing funds from my HSA. If I make a withdrawal after age 65, say in January, I can apply future medical expenses throughout that year for it to be tax-free, or is it only for previous expenses? It's a simple question, I just can't find the answer.

You can withdraw tax free to pay or compensate for previous expenses already incurred. Not for future medical expenses.

 

[Donno]

You can withdraw tax free to pay or compensate for previous expenses already incurred. Not for future medical expenses.

Thanks, but that is not what I thought. I thought disbursements were for a calendar year, no matter when they were withdrawn.

 

[audreyh1]

No. Not according to the rules, although I can see how tax filing wise it might not be noticeable.

People reimburse themselves after the expense.

 

[SevenUp]

Based on the Form 8889 Line 15 instructions, as long as the accumulated qualified medical expenses exceed the tax year HSA distributions, all is well, regardless of when during the year the expenses were incurred.