Please don't shoot the messenger here, but the HSA distribution made in a certain tax year must be for expenses PAID in that tax year
Because we (individual
tax payers) are in a cash basis/tax year system, there can be some flexibility around actual dates WITHIN the year, but in YOUR situation, where you contributed the maximum and expenses exceed what's in the account TO distribute, you cannot "apply" reimburse from to a future year's contribution.
Here's the IRS
guidance on this:
Now, as you can see the tax year of the "qualifying expense" is based on when PAID... so if you have the ability to defer a procedure or paying the bill into next year THAT will work.
And on the deductibility piece, health care expenses ARE deductible
, but to do so must be above 10% of AGI (7.5% of AGI for those 65 and over).
Hope this helps
Please let me know if you have questions...
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