New Employer and HSA HDHP medical questions

[mikeydotes]

Hello, first time poster/lurker

I've searched through the forums looking for a response that would answer my question/circumstances and could not, so i'm turning to the wider audience in my own post.

I was laid off in Jan-2018, my health insurance came to an end as that month ended.
Fortunately, things have gone well and i've accepted an offer with a new employer that begins April 30th, 2018.

My wife and i have been reviewing the medical plans, taking into consideration our goals for retirement savings and our medical costs we've decided to take advantage of the HDHP plan with an HSA.
At the same time, my wife is 12 weeks pregnant - talk about stress - she has not been able to see the doctor and is eagerly waiting for our next medical plan to kick in.

As i've been brushing up on HSA strategies with the likes of Mad Fientist... i have a couple of questions surrounding timing of contributions and bills that i am hoping to have answered.

Circumstance: We're going to make an upfront payment of $4,000 to the birth center where we delivered our first child
Question: Do we need to wait until April 30th when my employment and enrollment take place for the medical bill to count towards the HSA?

It is my hope that any 2018 medical bills would be counted against HSA contributions for 2018 regardless of enrollment date.

With the upcoming medical bills my goal is to not only max the HSA family contribution for 2018 but to have all bills incurred paid out of pocket so that the balance in the HSA account can be used as an emergency fund and/or to be withdrawn tax free in the future for any reason.

I appreciate any look/advice you all could provide.

[chuckster]

I believe you can only pay for, or, be reimbursed, for expenses that occur after the start date of the HSA itself, not the fiscal year it started in. So if your HSA doesn't exist before 4/30, it won't count.

[MDM]

I believe you can only pay for, or, be reimbursed, for expenses that occur after the start date of the HSA itself, not the fiscal year it started in. So if your HSA doesn't exist before 4/30, it won't count.

^Correct.

Note also that "start date of the HSA" usually means the date the first dollar goes into the account (that's the usual "state law" mentioned below), not merely the date one is first eligible nor even the date one "opens" an HSA.

See 2017 Publication 969 - p969.pdf for details:

For HSA purposes, expenses incurred before you es-
tablish your HSA aren’t qualified medical expenses. State
law determines when an HSA is established.

[mikeydotes]

Thank you Chuckster and MDM your responses are helpful.

Lastly, are you aware of payroll contributions being capped by a limit?
Would i perhaps be able to dump a 100% of my first paycheck into the HSA to cover the med costs?
Or in your experiences, do contributions tend to be capped at lower percentage? - i understand that this may vary by custodian/plan yet i'm trying to best gauge my options to optimize the strategy and get my wife to see professionals asap!

I really appreciate the responses

[CoffeeAndDonuts]

I can't speak to general corporate payroll practices but at our small company, I've maxed my HSA almost immediately (first 1-3 pay periods) in the past.

Also, the other posters are correct about expenses not being qualified until the first dollar is in the h.s.a. That also means that once you have an h.s.a never let it go to $0 even if you go off an hdhp! By keeping it open, you can accrue qualified expenses and when you can fund the h.s.a again in the future, use those to withdraw then.