I'm sure that I know the answer to this, but I am stretching for help for my annoying client. He has been driving me crazy for weeks about establishing an HSA for medical bills that he had "coming up". I researched it for him and he finally established one last week with $5,000. Yesterday he called me and explained that he had already incurred the medical expenses in July, he just didn't have any bills yet. I almost climbed through the telephone. Now of course, he wants to take the money back out to pay the bills that will be coming. I told him that he would be penalized. He will have plenty of other medical bills, so the HSA is not a bad thing, he needs the money that he established it with for these bills. I don't see any way out of the penalty, but if anyone else knows s way out for him, please let me know. Thanks! The last few weeks I have done nothing but put out my clients' self made fires. I took a three day vacation, but with my phone, they can always find me. TIA