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I accidentally paid for some medical expenses using my normal credit card instead of my HSA account. Can I withdraw the equivalent amount from my HSA without tax liabilities?

  • Possible duplicate of Can I use an HSA to pay financed payments for LASIK? – Pete B. Feb 14 '17 at 20:04
  • @PeteB. That question looks different from mine. Its asking about a future medical payment, I'm asking about ones I've already made. Also I want to confirm that there are no tax implications if I withdraw from my HSA in this way. – David Grinberg Feb 14 '17 at 20:06
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Yes you can. You will need proof of receipt for the amount and submit it to the bank who operates your HSA account. You have to ensure that your medical expenses qualify as they would if you had paid with your HSA account.

  • You may or may not have to provide the proof to your HSA provider. Many don't request the proof, and just allow you to transfer money out, a.k.a. the honor system. But keep the receipts in case the IRS audits you. – stannius Feb 16 '17 at 20:52
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Yes, you certainly can. As long as you incurred the expense while you had the HSA account in place, you can pay for the expense in any way you please, and reimburse yourself later for that expense out of your HSA.

Just ask your bank/HSA custodian how to handle it, as the procedure is different with different institutions. With some, it is as simple as requesting a cash withdrawal. Others may have a form for you to fill out. Make sure you save the receipt/invoice. (Of course, you should be saving all medical expense transaction records, even those that you pay directly out of the HSA.)

  • Good point about keeping the receipts either way - just because you paid directly with your HSA debit card, doesn't inherently prove that it was a legit expense, and doesn't shield you from an IRS audit disallowing the expense. – stannius Feb 16 '17 at 20:53

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