How do you document your HSA "stuff?"

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nguy44
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Re: How do you document your HSA "stuff?"

Post by nguy44 »

anon_investor wrote: Sat Jun 12, 2021 11:16 pm
nguy44 wrote: Sat Jun 12, 2021 8:51 pm
PianoAl wrote: Sat Jun 12, 2021 9:16 am Here's a question: Do you think it would be a good idea to add a note to the taxes saying: "The total on the 8889 is high because I am reimbursing myself for many years of medical expenses"?
As long as you have the records, no need to add a note, do not worry about it. We were audited by the IRS once, via a letter asking us to prove our high (relative to others) charitable contributions. We mailed in a copy of the receipts and cancelled checks, they replied thank you, all is well.

On the topic of this thread, the majority of our health providers are now either billing electronically, or allowing us to pay mailed bills electronically. It makes it much easier to document by saving the reply receipt in an email folder or as a PDF. The few paper medical bills that must be paid via mail are easy to scan into PDFs, for now only getting one of those every few months. We also have the credit card statements we can download and save electronically.

If I choose to get reimbursed I will enter info on those items into a spreadsheet, which gets backed up along with a copy of my electronic tax filings and the reimbursed receipts should the IRS come calling again.
What are you saving? I usually save the EOB, medical bill, and payment receipt. Are you also saving the CC statement?
Only in a few cases. We probably do not have to at all, but since we already receive the statement electronically, it is not a big deal to throw a copy into the computer folder with the other items. Having been audited by the IRS as I mentioned, I'd rather flood them with proof should it happen again :happy .
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papiper
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Re: How do you document your HSA "stuff?"

Post by papiper »

have an excel spreadsheet to record expenses - take a picture of each bill (or just download it), name it "year-month-day reason" and put it on the cloud in HSA expenses. Don't know why so many people make this sound hard. The year-month-day name makes it easy to sort. Still have to hear of one person who was ever audited.
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dianna
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Re: How do you document your HSA "stuff?"

Post by dianna »

Hello all,
We are in our 50's, but our approach to HSA records has been the following:
1) scan every bill that we have paid out of pocket, once each year (usually around tax time as that is what reminds me to do it). Have been doing for 7 years now.
2) enter every payment into an excel spreadsheet so I have an understanding of how much we have paid out-of-pocket vs the balance of the HSA account. I use that "out of pocket" total within my Emergency Funds calculation, as I know that if SHTF (sugar* hits the fan) I can access those dollars immediately.

As many others have said, we have a balance larger than the bills we have already paid, and that's to ensure that we have some good funds down the line in our 60's or 70's ++, or if something catastrophic were to happen.
TJat
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Joined: Tue May 04, 2021 6:51 am

Re: How do you document your HSA "stuff?"

Post by TJat »

winterfan wrote: Sat Jun 12, 2021 7:42 pm
TravelforFun wrote: Sat Jun 12, 2021 7:13 pm I don't keep any receipts now because I know when I'm in the 70s or older, medical bills will come in droves.

TravelforFun
That's kind of what I'm thinking too and why we don't use it for inexpensive things (eye exam, dentist, etc.). I am keeping the receipts in a file, but it's really not that much money yet.
Once your 65, you can withdraw for any reason and there’s no need to provide receipts. The HSA can really just be a high powered retirement vehicle that just happens to have “health” in the name.
AnEngineer
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Re: How do you document your HSA "stuff?"

Post by AnEngineer »

TJat wrote: Sun Jun 13, 2021 3:44 pm
winterfan wrote: Sat Jun 12, 2021 7:42 pm
TravelforFun wrote: Sat Jun 12, 2021 7:13 pm I don't keep any receipts now because I know when I'm in the 70s or older, medical bills will come in droves.

TravelforFun
That's kind of what I'm thinking too and why we don't use it for inexpensive things (eye exam, dentist, etc.). I am keeping the receipts in a file, but it's really not that much money yet.
Once your 65, you can withdraw for any reason and there’s no need to provide receipts. The HSA can really just be a high powered retirement vehicle that just happens to have “health” in the name.
While a legitimate way to use the HSA if already maxing other tax advantaged accounts, you do have to pay tax when over 65 like a trad IRA, just not the penalty.
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winterfan
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Re: How do you document your HSA "stuff?"

Post by winterfan »

AnEngineer wrote: Sun Jun 13, 2021 6:21 pm While a legitimate way to use the HSA if already maxing other tax advantaged accounts, you do have to pay tax when over 65 like a trad IRA, just not the penalty.
But only for non-med expenses though right? Unfortunately, we only qualified for an HSA this year through my spouse's employer, so we are maxing it out and not withdrawing money. We plan on just letting this ride until we are older and we incur more costly medical expenses.
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winterfan
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Re: How do you document your HSA "stuff?"

Post by winterfan »

TJat wrote: Sun Jun 13, 2021 3:44 pm
winterfan wrote: Sat Jun 12, 2021 7:42 pm
TravelforFun wrote: Sat Jun 12, 2021 7:13 pm I don't keep any receipts now because I know when I'm in the 70s or older, medical bills will come in droves.

TravelforFun
That's kind of what I'm thinking too and why we don't use it for inexpensive things (eye exam, dentist, etc.). I am keeping the receipts in a file, but it's really not that much money yet.
Once your 65, you can withdraw for any reason and there’s no need to provide receipts. The HSA can really just be a high powered retirement vehicle that just happens to have “health” in the name.
That's good to know. I am younger though and have a ways to go until 65. I guess it doesn't hurt to keep a few receipts in a file until then just in case.
AnEngineer
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Re: How do you document your HSA "stuff?"

Post by AnEngineer »

winterfan wrote: Mon Jun 14, 2021 6:21 am
AnEngineer wrote: Sun Jun 13, 2021 6:21 pm While a legitimate way to use the HSA if already maxing other tax advantaged accounts, you do have to pay tax when over 65 like a trad IRA, just not the penalty.
But only for non-med expenses though right?
Yes.
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