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 2010, then you can hold onto all those bills and proofs of payments from May 2010 on, and use them to justify HSA withdrawals that you make in 202
5.
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"
USAA Launches First ETF Lineup
AAII Investor Sentiment: Bullish Sentiment Approaches 40% Bullish sentiment has been very high in the past few weeks. Investor's Intelligence peaked at 62.5% bulls recently, with 60% indicating oversold. Likewise, Market Vane Bullish Consensus peaked at 69% last week, with 70% indicating oversold.
AAII sentiment has not been accurate in showing oversold conditions.
Target return of RiverPark Short Term High Yield (RPHYX / RPHIX)? Sorry
@claimui - Not qualified to answer your good question. Am sure someone will.
Enjoyed
@msf’s analysis above. Spot-on in many respects. What always strikes me are the discussions that arise during times of stress regarding risk as pertains to cash equivalents or cash alternatives. At a time when equities might be falling by
50% or more, some investors appear unnerved by the potential for much smaller losses in their cash accounts. Heck - I’m willing to take a
5% haircut in a mm or ultra-short if the alternative is a
50% or greater loss in an equity fund.
I hadn’t thought about the possible freeze on withdrawals. That would be a problem if you’re relying on these funds for subsistence or to pay the mortgage. Might also work against equities if investors couldn’t transfer money into depressed equity funds. In imposing the new rules the SEC was attempting to take control of a monster they didn’t create (directly anyway).
As far as T-Bills and FDIC go, these are as
good as the word of the
politicians who write and execute the rules. So, even those pose some risk of loss. Helps explain the appeal of alternative currencies like precious metals and Bitcoins to some.
