Health Savings Account Question

April 27, 2007 5:58 AM

Health Savings Accounts: If I pay X out of pocket for medical expenses, can I take X out of my HSA later that year and pay myself back?
posted by drezdn to Health & Fitness (10 answers total)

Isn't that the purpose of an HSA? As long as the expenses are acceptable under your plan, and within the proper time frame, then I don't see why you wouldn't.
posted by kimdog at 6:13 AM on April 27, 2007

Yes. That's what they are for. Or, you can leave it there to grow for future years -- unlike the Flexible Spending Accounts you don't have to "use it or lose it." My HSA came with a debit card for just this purpose.
posted by dpx.mfx at 6:13 AM on April 27, 2007

I had a Health Flexible Savings Account, where I would have lost money if I hadn't scrambled at the end of the year to find valid expenses. At one point they rejected half my claims, but I called them and convinced someone I should get reimbursed for something like copays for therapy.

Despite the tax savings from having this kind of plan, I opted to not do another one this year -- too much hassle for someone as disorganized as me.
posted by indigo4963 at 6:29 AM on April 27, 2007

Best answer: As long as they are a "qualified medical expense" you can use your HSA to cover the costs.

You cannot use HSA dollars to cover costs for services received prior to the date the HSA is established. But be sure you still have your receipts.

Tons of infomation here:
http://www.ustreas.gov/offices/public-affairs/hsa/pdf/all-about-HSAs_040507.pdf
posted by pdf74 at 6:50 AM on April 27, 2007

You don't "take it out" per se, you submit for reimbursement just like you do with insurance. You have to provide documentation of the expense and attest that it was not covered by insurance etc. If you meet that minimal burden then they will send you the money. So, you are not merely taking it out, but it is almost that simple.
posted by caddis at 7:06 AM on April 27, 2007

Response by poster:
You don't "take it out" per se, you submit for reimbursement just like you do with insurance.

With my HSA though, I have a debit card and check book, so I've never need to submit anything.
posted by drezdn at 7:25 AM on April 27, 2007

Some HSA are administrated, to relieve the participant of the burden of compliance. You or your employer pay fees for this. You can, however, administer the HSA yourself. As others point out, this requires accountability should the IRS come knocking.

You can use HSAs to cover non-medical expenses, but you take a huge tax hit for doing so.
posted by deadfather at 8:24 AM on April 27, 2007

Response by poster: You can use HSAs to cover non-medical expenses, but you take a huge tax hit for doing so.

What I'm wondering is if say I had an HSA throughout 2007, but I didn't have enough money to cover a medical expense so I paid out of pocket, could I pay myself back from my HSA later that year?
posted by drezdn at 8:26 AM on April 27, 2007

Best answer: From pdf74's linked pdf it looks like I can (p31)...

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
prove that:
• the expenses were incurred,
• they were not paid for or reimbursed by another
source or taken as an itemized deduction
posted by drezdn at 8:32 AM on April 27, 2007

What I'm wondering is if say I had an HSA throughout 2007, but I didn't have enough money to cover a medical expense so I paid out of pocket, could I pay myself back from my HSA later that year?

yes
posted by caddis at 10:42 AM on April 27, 2007