Can I receive favorable tax treatment if I use my HSA to pay for qualified medical expenses incurred before I set up my HSA?
No. If you use your HSA to reimburse your qualified medical expenses incurred before your HSA is established, the reimbursements will be included in your gross income for federal income tax purposes and may be subject to the 10% excise tax. We recommend you establish your HSA as soon as possible once you obtain HDHP coverage and meet the other HSA eligibility requirements.
