Have we confirmed the fact that you can take out tax-free for medical bills incurred from previous years?
Yes, on page 30 of this document:
HSA Distributions can be used to
reimburse prior years’ expenses as long
as they were incurred on or after the date
the HSA was established.
– No time limit on when distribution must occur
– Individual must keep records sufficient to
• the expenses were incurred,
• they were not paid for or reimbursed by another
source or taken as an itemized deduction
I see your only putting in for one person.
Right. Luckily my wife didn't qualify, and she's still on a non-hsa high deductible plan. I say "luckily" because if she were on the plan, our "family" deductible would have been $7,000 instead of $3.500, and my hernia repair and colonoscopy this year would have cost me $7K! Also I found out that I can use my HSA money for wife's expenses too (thanks, Martha). Wild huh? Sounds too good to be true.
Where/How are you paying for your medical expenses?
As most in this forum, I have enough after tax money for our usually modest medical expenses. There's no lost investment opportunity here; by paying with after tax funds, I have the opportunity to have my money compound tax free.