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HSA Common Questions

 

Is there some sort of time limitation for withdrawing money from the health savings account & paying the bill?  For instance, we know we have $3,000 in bills coming, and I want to have the funds ready to pay them. Can I transfer the money in & out, then pay the bill 30 days later?
 

There is no regulation associated with Health Savings Accounts regarding when you pay your provider for medical care.  The IRS is not concerned as to when you pay your bill, their only concern is that you take withdrawals for medical expenses.  I would advise whenever you take a withdrawal from your Health Savings Account, you put a copy of the bill or Explanation of Benefits from the insurance company with your tax return. 

Also, withdrawals are based on the date of service to the medical provider.  So, as long as the Health Savings Account is opened prior to the date of service, then you can withdraw the funds at anytime.

 

What are Health Savings Accounts (HSA's)?

How do I set up an HSA?

What are qualified medical expenses?

"Can I pay my health insurance premiums from my HSA?"

Can I withdraw money from my HSA for non-medical purposes?

How do employer sponsored HSA medical plans affect employees that are 65 and older?

2 questions asked by a Facebook fan

Is there a time limit?

 

 

 

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