As a reminder, we like the HSA ALOT. If you have a high deductible health plan, funding the HSA is a good idea.
While you can fund an HSA next year (2017) for this year’s taxes (2016) we would recommend you not, as the recordkeeping is not always great and can cause tax return issues.
Should I spend my HSA?
So you put your HSA funds in pre-tax, they grow tax deferred and you draw them out without taxes as long as you use them for medical expenses.
We like deferring some of the HSA for later use. If you are in a bind and have a large medical expense, certainly use it. DO NOT feel bad for not using the funds as it is a very good bet you will need them for medical expenses in the future and the tax deferred growth is a big advantage.
Many plans, including our favorite the HSA Bank, allows you to invest the funds easily. Let us know if you have any questions !
Have a Great “Pre-tax Medical Savings” Day!
John A. Kvale CFA, CFP