For those of you who do not know, an HSA is a Health Savings
account. In very simple terms an HSA is
an account where you can put in money tax free to pay for qualified medical
expense. Think doctor visit copays,
trips to the dentist, and glasses. For a
better list see http://www.hsacenter.com/qualified-med-expenses.html
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If you happen to be in 25% tax bracket every $1,000 you
put into an HSA saves you $250 on your taxes.
Most HSA accounts provide you with a checkbook and debit
card. When you have an expense, say $220
for eyeglasses you can write a check or use your debit card to pay for it. Or you can pay with non HSA money and later
reimburse yourself out of your HSA, as long as it was a qualified medical
expense and you have detailed records.
If you reimburse yourself, how much time do you have to
get the reimbursement done? Do you have
to reimburse yourself within 30 days?
90?