your method for saving HSA receipts?

[simple girl]

Hello all,

I have tons of medical receipts from years 2012 - 2016 that I have organized into files and placed into our firebox. We had an HSA those years but decided not to reimburse ourselves so that we could let the HSA grow. At some point in the future, we will turn in those receipts for reimbursement.

Questions:

1) These receipts are like cash to us, essentially - probably about $30K. Hubby is a bit concerned they are not safe enough in the firebox. It would be a HUGE task, and I suppose I could scan each and every one of them {groan} ...but I'm trying to think of an easier method to back them up/make them safe. Any ideas?

2) Does anyone know how long you need to keep these receipts after you do take a disbursement from the HSA?

 

[travelover]

My HSA does not require receipts. I put money into the HSA and take money out and report those transactions to the IRS on my taxes. If I'm audited, I can show the receipts.

 

[simple girl]

My HSA does not require receipts. I put money into the HSA and take money out and report those transactions to the IRS on my taxes. If I'm audited, I can show the receipts.

That's true. So, I guess I need to keep them as long as they recommend keeping your tax records after the year that you submit them. Thanks.

 

[foxfirev5]

Since the HSA investment options are lousy we take a disbursement ASAP. The expense ratios for the HSA are far above what our other investments suffer. Why pay a higher expense rate for an investment you can use with an IRA, Roth etc ? Manage your entire portfolio to fit your asset allocation with minimum expenses and taxes. It's worth your time.

My advice would be to file them and keep the receipts as long as would be required to for tax purposes.

 

[bingybear]

I've been funding the HSA with the idea it might make a nice LTCI surrogate. For the last couple years I have been scanning and tallying the medical expenses since I need to put them into my tax forms. Even though I really don't hit a limit that lets me deduct on the federal return, I can on my state return. Since I get some deduction on state return complicates later trying to get the money out of the HSA with these receipts. Same would be true with deductions on the federal returns if you itemized your health expenses. Using the $ for deductions and pulling out of an HSA are likely not legal.

But my plan is to spend the HSA $ after medicare starts or possibly when I blow through my max out of pocket.

your fire box is likely safer than your computer ... unless the computer data is stored in the cloud.

I have been using a flat bed scanner (old one), however you may to well to just use a camera set up properly

 

[easysurfer]

I remimburse myself each Jan for qualified expenses the previous year.

I dedicate a file drawer that contains all receipts organized by year. For expenses not reimbursed yet, I have a separate folder for that.

Also, for quick reference I create a spreadsheet separated by year. That way I can quickly see what I contributed, what I paid, what was reimbursed. I assign my own reference number to each item on the spreadsheet and write the reference numbers on the receipts.

Hope this makes sense, if not, that is because I'm listening to a baseball game as I type and might be a bit distracted .

 

[MichaelB]

1) These receipts are like cash to us, essentially - probably about $30K. Hubby is a bit concerned they are not safe enough in the firebox. It would be a HUGE task, and I suppose I could scan each and every one of them {groan} ...but I'm trying to think of an easier method to back them up/make them safe. Any ideas?

If you have proof of payment in digital form, such as credit card and bank statements, you could list them, reference the payment type and date, then store that doc in digital form along with the bank statements. You continue to keep the original copy and use that as backup.

 

[simple girl]

your fire box is likely safer than your computer ... unless the computer data is stored in the cloud.

I have been using a flat bed scanner (old one), however you may to well to just use a camera set up properly

I like the idea of using my camera - brilliant - thanks! Much easier for me than our flat bed scanner.

If I backed them up digitally I was going to do it on the cloud. I have been contemplating FidSafe.

 

[simple girl]

If you have proof of payment in digital form, such as credit card and bank statements, you could list them, reference the payment type and date, then store that doc in digital form along with the bank statements. You continue to keep the original copy and use that as backup.

I do pay all bills by check or credit card, so yes I could refer to those if need be. I do also make an excel spreadsheet every year listing all of the receipts, with dates paid, who was paid,and how I paid them for an overall reference. However, I wasn't sure if I would need the actual bill from the service provider if audited. And some bills (like prescriptions from CVS) would definitely need an actual receipt to prove it was truly a prescription, and not just non-medical supplies.

 

[audreyh1]

We do scan the paid bills if we don't have an electronic copy already. Occasionally I put an updated DVD in the bank safe deposit box.

We don't actually plan to reimburse these - we want to spend the HSA to reimburse Medicare parts B and D when we can no longer contribute. But I feel compelled to maintain the records anyway.

 

[sengsational]

Since such a wide variety of expenses are allowed, that drives a wide variety of payment methods and, frankly, quite a mess. That is, if you don't spend it, so might need the proof if you get audited.

I have a spreadsheet and receipts printed and bound, but it's not 100% audit proof. I just hope it doesn't come to using these records, but if it does, it will be mostly proven.

 

[RunningBum]

Like easysurfer, I keep a spreadsheet with the date, amount, who it was paid to, and if necessary, an explanation. I also use a reference number that matches the spreadsheet entry to the receipt--2017-01 for the first receipt this year, 2017-02, etc.


If I lose the receipts I'll still use the spreadsheet to make claims. If I get audited, I'll go to the providers if I have to get proof. I keep a backup drive in my fireproof safe. I'd like to keep a drive offsite, but I don't know where to do that and it doesn't seem worth paying for a safe deposit box. I'm just not comfortable backing up all my data to a cloud.

 

[RobbieB]

My records are all at HSA bank, I never keep any receipts.

I charge all legit expenses to the HSA VISA card and they all appear in my online statements. Which read pharmacy, dentist, co-pay.

Easy.

 

[TrophyWife]

Try photographing them with the expensify app.It pulls all the numbers and information from the receipts. It files it by date, gives you a pdf download and pulls information from each receipt. It also gives you thumbnails of each receipt. I use it and love it! Then store the downloads in the cloud. Easy!

 

[EastWest Gal]

Try photographing them with the expensify app.It pulls all the numbers and information from the receipts. It files it by date, gives you a pdf download and pulls information from each receipt. It also gives you thumbnails of each receipt. I use it and love it! Then store the downloads in the cloud. Easy!

Nice idea--for all kinds of receipts, I'll look for the app.

BTW, you can reimburse yourself from your HSA anytime you want--you don't have to reimburse yourself the year the bill was incurred. It's on an honor system unless you get audited. So keeping the receipts is really important, along with records for when you pulled money out of the HSA. Even if you don't dip into the HSA at the time you have health care expenses, all those receipts mean you can reimburse yourself anytime you want without penalty. Just be sure you know when you started the HSA and don't reimburse yourself for expenses before you had the HSA. Also, if your expenses are included in a tax deduction, you cannot then reimburse yourself for those expenses.

Interesting scenario: You've had an HSA for many years and have contributed the maximum and your account has grown. Over the past 5 years you have incurred $30K in health care expenses but paid them out of pocket (note that this includes your spouse and dependent children).

Your car then gives up the ghost and it's time to by a new (or used car, new to you). Guess what? You can pull $30K out of your HSA account and use it to buy the car. And you don't have to be 65 to do it. Can't do it if you haven't had the expenses, though! So it's sort of like another IRA or aa limited Roth IRA.

This thread from Bogleheads is a discussion of the topic:

https://www.bogleheads.org/forum/viewtopic.php?t=107058

 

[foxfirev5]

My records are all at HSA bank, I never keep any receipts.

I charge all legit expenses to the HSA VISA card and they all appear in my online statements. Which read pharmacy, dentist, co-pay.

Easy.

Good points. HOWEVER, My Dr has decided to work of a living and his new office is a joke regarding billing. Nuf said.

 

[RobbieB]

Interesting scenario: You've had an HSA for many years and have contributed the maximum and your account has grown. Over the past 5 years you have incurred $30K in health care expenses but paid them out of pocket (note that this includes your spouse and dependent children).

Your car then gives up the ghost and it's time to by a new (or used car, new to you). Guess what? You can pull $30K out of your HSA account and use it to buy the car. And you don't have to be 65 to do it. Can't do it if you haven't had the expenses, though! So it's sort of like another IRA or aa limited Roth IRA.

Oh yeah, if you do that it would be a good idea to have all the receipts for sure. IRS looks at your HSA account and see a 30 grand payment to "North Country Ford", that will get attention big time.

 

[travelover]

Oh yeah, if you do that it would be a good idea to have all the receipts for sure. IRS looks at your HSA account and see a 30 grand payment to "North Country Ford", that will get attention big time.

It doesn't work that way. You take the money out directly to yourself. On your tax forms you declare how much you withdrew and how much of it was for eligible medical expenses. The IRS could audit you, or not, same as any other tax related claim.

 

[simple girl]

Try photographing them with the expensify app.It pulls all the numbers and information from the receipts. It files it by date, gives you a pdf download and pulls information from each receipt. It also gives you thumbnails of each receipt. I use it and love it! Then store the downloads in the cloud. Easy!

Cool! I will check it out, thanks!

 

[RobbieB]

It doesn't work that way. You take the money out directly to yourself. On your tax forms you declare how much you withdrew and how much of it was for eligible medical expenses. The IRS could audit you, or not, same as any other tax related claim.

I agree, if you use an HSA account for this kinda stuff, you need records.

If you use it to pay eligible expenses as they occur directly to the providers it's all right there in their records. You pay yourself you better have good records.

 

[RunningBum]

It doesn't work that way. You take the money out directly to yourself. On your tax forms you declare how much you withdrew and how much of it was for eligible medical expenses. The IRS could audit you, or not, same as any other tax related claim.

Yeah, I wouldn't use an HSA credit card or write a check from the account (if that's even an option) to a car dealer. I'd transfer it to my account, using the past receipts as justification if the IRS asks. Where the money goes is immaterial, because it's just a delayed payment on those receipts.

 

[rodi]

My HSA limits how much you can put on the credit card they provide. I learned this the hard way when I tried to use it to pay for my son's surgery last year... (which we paid for out of pocket because of high deductible insurance.) After the 3rd attempt to pay online (and getting rejected) I called the HSA and they explained. So I paid them with other funds, then reimbursed myself.

 

[brucethebroker]

Are you stressed a little about the backlog? It would sure bug me to have 30k worth of receipts waiting for me in the future.

Maybe start "paying them off" a few each year so you could begin throwing some away. You could whittle away at the pile over time. Put the cash in your Roth or tax free bonds if you still need the tax free growth.

 

[kramer]

I have never taken money out of my HSA. I save receipts and take pictures of them annually, I write out the expenses in black marker on yellow paper for each year, total it, and take a picture of that piece of paper, also.

If I had a bigger account or if I was still able to contribute more to the account, I would do something more efficient. But it is only about $30K which I will easily spend, even if just on Medicare Part B and Part D.

NOTE: Many receipts fade to nothing over time. This has even happened within a year. So scanning or photos is really necessary.

Someone mentioned high investment expenses ... fortunately, I have HSA bank, my fees are fixed at about $66/year. I can invest in Vanguard ETFs in the associated TD Ameritrade brokerage account at zero cost, they have a program for no-fee ETFs. So, for my account balance, that is an ongoing fee of about 0.25% per year (which is not nothing, of course). At some point, before I ever touch my ROTH, I will probably take it all out in one year ... perhaps in my early 70's.

 

[Mulligan]

Im still in the stone age. All of my bill receipts are stuffed in an envelope that says "HSA receipts" in my file cabinet. Would suck if my house burned down, I suppose.