According to the IRS, you may only reimburse yourself for qualified medical expenses that you incur after your HSA is established. An HSA is not considered established simply when you first enroll in an HSA-qualified health plan or when you become HSA-eligible. (see IRS Notice 2008-59, Q&A 39).
Because an HSA is treated as a trust under law, its establishment is determined by the trust laws of the state governing the account. In most states, three actions must occur to formally establish a trust:
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Intent – You must show intent to open the trust, typically by completing a paper or online application.
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Beneficiary – You must name a beneficiary, which is usually part of the application process.
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Funding – You must place something of value into the trust.
For HSAs, this means your account is not officially established until your first deposit is posted. Because of this requirement, it is strongly recommended that anyone opening an HSA make an initial deposit, even as little as one cent ($0.01), to ensure the account is considered established. Any qualified expense incurred after that date may be reimbursed with HSA funds in the future.
Lively does not offer tax or legal advice. Please consult a qualified tax and/or legal professional to confirm how these rules apply to your specific situation.
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