The below is a quote from another HSA question's comment:
I agree. To your point the best course of action would be to max out your HSA contributions, not distribute them even if you can, invest them for many years, and pull out many years worth of distributions tax free any time you'd like in the future. (With years worth of saved receipts in case of audit.)
I do not understand the italicized text. It reads to me as such:
- 2020 contribute 5000 to HSA and place into investment vehicle.
- 2020 surgery for 1000 incurred payed out-of-pocket
- 2021 contribute 5000 to HSA same as 2020
- 2022 surgery for 9000 incurred and payed out-of-pocket
- 2023 take tax-free disbursement from HSA in amount of $10k since receipts have been saved.
I believe I am misunderstanding the comment.