Is there a time limit on HSA expense reimbursement?
Asked by: Dr. Akeem Cruickshank DDS | Last update: January 11, 2026Score: 4.5/5 (9 votes)
Is there a time limit on HSA reimbursement?
There's no deadline for HSA reimbursements
According to the IRS, there is no time limit for paying yourself back, but there are some rules (we'll explain more below). You can't reimburse yourself for expenses incurred before you had an HSA. They're also expecting you to keep meticulous records.
How far back can you submit receipts for HSA?
HSA reimbursements need matching receipts.
For example, an employee can reimburse themself in 2022 for an expense incurred in 2010, as long as they have the receipt from 2010.
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
Can I use my HSA to pay for previous year expenses?
And there's absolutely no time constraints on when you can reimburse yourself for a medical expense incurred after the account is opened. As long as you're able to prove it was an eligible expense, you can reimburse yourself years later - that's why it's always a good idea to keep those receipts.
How to Time Medical Expense Reimbursements from Your HSA
Can you reimburse HSA years later?
You can reimburse yourself anytime. Today, tomorrow, or 20 years from now. The only rule is that your HSA was established at the time that the expense was incurred (date of service). And that the expense was not reimbursed in any other way.
What triggers an HSA audit?
Does HSA spending trigger an audit? The IRS doesn't monitor how you spend your HSA funds throughout the year, but that doesn't mean they won't ask for proof that your expenses were eligible. And if your tax return contains unrelated IRS audit red flags, your risk for an HSA audit could increase.
What is the downside of an HSA?
Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).
How does HSA reimbursement work?
HSA reimbursement is the concept of using money from a health savings account (HSA) to “pay back” qualified medical expenses that were made out of pocket, usually because the total expense exceeds the amount in the account at the time. HSA reimbursement is permitted for any qualified medical expense.
What is the 60 day rule for HSA?
Generally, you must complete the rollover within 60 days after you received the distribution. An HSA can only receive one rollover contribution during a 1-year period. See Pub. 590-A, Contributions to Individual Retirement Arrangements (IRAs), for more details and additional requirements regarding rollovers.
How does IRS know what you spend HSA on?
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes.
Can HSA pay for gym membership?
Gym memberships. While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.
What is HSA receipt loophole?
The Adult Child HSA Family Contribution Loophole
That's why you can do things like save receipts for decades and then pull the money out of the account. That's why you can use it as a stealth IRA by investing in it for decades and then pulling it out after age 65 penalty-free and buying a sailboat with it.
Can I pay last year's medical bills with this year's FSA?
No, you can only use this year's FSA funds to pay for an eligible expense incurred during this year, even if you have a payment plan going beyond this year.
Can you use HSA retroactively?
Many people wonder, “Can you contribute to an HSA for prior years?” No. HSA funds can also be used for reimbursable medical expenses incurred in the current and subsequent years.
Can I use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
Is there a deadline for HSA reimbursement?
4. There is no time limit on HSA reimbursements. This fact is the primary key to unlocking the true potential of the HSA. Because there is no reimbursement time limit, taxpayers can wait until the time of their choosing to be reimbursed from the HSA for medical expenses, even if it is years or decades later.
How long should I keep HSA receipts?
Hold on to every receipt and statement
You might want to hold on to all those HSA records as long as your tax return is considered "open," which is about three years after you file, or as long as you have your HSA account. Your current HSA plan provider may have a tool to store receipts on their portal.
Can I get reimbursed from my HSA for prior year expenses?
Keep in mind that you can reimburse yourself for any expense at any point, as long as it was incurred after your HSA was established. So if you had an expense that you paid out-of-pocket last year after your HSA was established, but want to reimburse yourself for it this year, you can do so without penalty.
When should you not use an HSA?
HSAs might not make sense if you have some type of chronic medical condition. In that case, you're probably better served by traditional health plans. HSAs might also not be a good idea if you know you will be needing expensive medical care in the near future.
Is it better to have an HSA or copay?
If you don't have an HDHP, have a family, and require frequent diagnostic medical care, a copay plan may be a better option. Neither an HSA or copay plan is better than the other; you just need to decide which plan meets all of your needs and will benefit you the most.
Can you make too much money for HSA?
What happens if I contribute more than the IRS annual maximum? If your HSA contains excess or ineligible contributions you will generally owe the IRS a 6% excess-contribution penalty tax for each year that the excess contribution remains in your HSA. It is recommended you speak with a tax advisor for guidance.
Can I use my HSA to pay for yoga?
Fitness fees do not immediately qualify as eligible HSA/FSA expenses, but they do qualify if a provider recommends exercise to prevent or treat a medical condition. To qualify those expenses for reimbursement with an HSA/FSA administrator, you need a Letter of Medical Necessity from a provider.
What proof is needed for HSA reimbursement?
For FSAs, HSAs, and some HRAs, a detailed provider receipt or itemized cash register receipt is usually sufficient, if it contains all the required information listed above. For some HRAs, an Explanation of Benefits (EOB) from your insurance company is required.
How far back can IRS audit HSA?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.