Best HSA Provider for Investing HSA Money As a public service, here is the elusive Q-39, in it's entirety:
Q-39. When must a distribution from an HSA be taken to pay or reimburse, on a tax-free basis, qualified medical expenses incurred in the current year?
A-39. An account beneficiary may defer to later taxable years distributions from HSAs to pay or reimburse qualified medical expenses incurred in the current year as long as the expenses were incurred after the HSA was established. Similarly, a distribution from an HSA in the current year can be used to pay or reimburse expenses incurred in any prior year as long as the expenses were incurred after the HSA was established. Thus, there is no time limit on when the distribution must occur. However, to be excludable from the account beneficiary’s gross income, he or she must keep records sufficient to later show that the distributions were exclusively to pay or reimburse qualified medical expenses, that the qualified medical expenses have not been previously paid or reimbursed from another source and that the medical expenses have not been taken as an itemized deduction in any prior taxable year. See Notice 2004-2, Q&A 31 and also Notice 2004-25, for transition relief in calendar year 2004 for reimbursement of medical expenses incurred before opening an HSA.
Example. An eligible individual contributes $1,000 to an HSA in 2004. On December 1, 2004, the individual incurs a $1,500 qualified medical expense and has a balance in his HSA of $1,025. On January 3, 2005, the individual contributes another $1,000 to the HSA, bringing the balance in the HSA to $2,025. In June, 2005, the individual receives a distribution of $1,500 to reimburse him for the $1,500 medical expense incurred in 2004. The individual can show that the $1,500 HSA distribution in 2005 is a reimbursement for a qualified medical expense that has not been previously paid or otherwise reimbursed and has not been taken as an itemized deduction. The distribution is excludable from the account beneficiary’s gross income.
Best HSA Provider for Investing HSA Money No time limit. The only requirement is that you must have opened the HSA (or its predecessor, if you moved accounts) prior to incurring the qualified expenses.
So if you opened your HSA in May 20
10, then you can hold onto all those bills and proofs of payments from May 20
10 on, and use them to justify HSA withdrawals that you make in 2025.
This seemed too good to be true, so years ago I bookmarked an IRS publication on the subject. Look for Q-39 in this 2004 IRS Bulletin:
https://www.irs.gov/irb/2004-33_IRB"there is no time limit on when the distribution must occur"
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AAII Investor Sentiment: Bullish Sentiment Approaches 40% FYI: In normal times a bullish sentiment reading of 40% wouldn’t be much of a big deal, but given the state of sentiment over the last several years, 40% is now considered an accomplishment. In this week’s sentiment survey from AAII, bullish sentiment increased
1.7 percentage points up to 39.6%. That represents a five-week high, but also a record
147 straight weeks where bulls have failed to be in the majority.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/bullish-sentiment-approaches-40/
Discussion with a Portfolio Manager @PBKCM: Given what Old_Skeet said above about unrealized gains and high turnover of your fund, do you have any idea what you'll be paying out in distributions for 20
17? Thanks.
Hi
@BenWP. We expect to make a distribution in mid-December. I'll update when I know more.
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Discussion with a Portfolio Manager @PBKCM: Given what Old_Skeet said above about unrealized gains and high turnover of your fund, do you have any idea what you'll be paying out in distributions for 20
17? Thanks.
Discussion with a Portfolio Manager @hank: Very prescient comments about Verlander; two long balls give the Dodgers a 3-
1 lead and someone else had to win the game. I watched JV with the Tigers as you did.
