HSA - can I pay cash and get reimbursed?

italdesign

Level 2 Member
Have a few hundred bucks of medical bill. I have HSA. I believe the normal drill is to pay from HSA using the debit card. However, I would rather pay by my own CC (to meet minimum spend) and get reimbursed from HSA. Is that possible?
 

GettingReady

Level 2 Member
Have a few hundred bucks of medical bill. I have HSA. I believe the normal drill is to pay from HSA using the debit card. However, I would rather pay by my own CC (to meet minimum spend) and get reimbursed from HSA. Is that possible?
We have a FSA, flex spending account, and I do it all the time. The max we can put in is $2500/yr. Hubs is still officially employed until April (retirement) but off due to surgery. There won't be any funding after April but we can still legally use the max amount. We got new glasses, night guard, c-pap supplies. All medical bills being paid with CC and all receipts submitted by fax. Easy process.
 

sriki

Level 2 Member
Have a few hundred bucks of medical bill. I have HSA. I believe the normal drill is to pay from HSA using the debit card. However, I would rather pay by my own CC (to meet minimum spend) and get reimbursed from HSA. Is that possible?
I have done it before. Just keep the records if you plan on doing this multiple times.
 

ChiliPalmer

Look at me.
Not sure how FSAs work, but for my HSA, I do this with every bill.

But I don't reimburse.

These accounts are tax-deferred. I'm letting it sit until I'm much older. I keep a log. Some day, I'll reimburse.

It's like an IRA.
 

GettingReady

Level 2 Member
Not sure how FSAs work, but for my HSA, I do this with every bill.

But I don't reimburse.

These accounts are tax-deferred. I'm letting it sit until I'm much older. I keep a log. Some day, I'll reimburse.

It's like an IRA.
FSA's are a little different. It's pretaxed dollars, but you have to use, or lose, the contribution. Our company will allow $500 to rollover to the next year but that's it. We make sure there's no money left on the table at the end of the year.
 

kodiak jack

Level 2 Member
Not sure how FSAs work, but for my HSA, I do this with every bill.

But I don't reimburse.

These accounts are tax-deferred. I'm letting it sit until I'm much older. I keep a log. Some day, I'll reimburse.

It's like an IRA.
Are you actually able to take a tax-free withdrawal (the reimbursement) in a year much later than the expense actually occurred? That doesn't seem very IRS-like? I had thought (though i'm not looking at documentation) that your reimbursement had to be in the year of the expense (or at least before April 15 of the subsequent year.) And it certainly needs to be supported by receipts.
 

Matt

Administrator
Staff member
Are you actually able to take a tax-free withdrawal (the reimbursement) in a year much later than the expense actually occurred?
Yes.
That doesn't seem very IRS-like?
The IRS is a disaster, filled with complexity and loopholes.
I had thought (though i'm not looking at documentation) that your reimbursement had to be in the year of the expense (or at least before April 15 of the subsequent year.)
Nope.
And it certainly needs to be supported by receipts.
Yep.
 

Vic Diaz

Level 2 Member
You can reimburse yourself whenever you would like (retirement if you so desire) as long as that expense has not been reimbursed before. I plan on doing this. HSA goes in tax-free, grows tax-free, and you can withdraw tax-free. Also, you can invest it in ETF's and the like, good tool if you can afford to not reimburse your expenses now.
 

kodiak jack

Level 2 Member
You can reimburse yourself whenever you would like (retirement if you so desire) as long as that expense has not been reimbursed before. I plan on doing this. HSA goes in tax-free, grows tax-free, and you can withdraw tax-free. Also, you can invest it in ETF's and the like, good tool if you can afford to not reimburse your expenses now.
Awesome, thanks Vic and Matt; i did not know that. Well, i will definitely be doing it now!
 
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