Personal Finance (Not Investing) • HSA Record Keeping [in case of an IRS audit]

I think it's easy save HSA qualified expenses. Seems a lot of people make seem harder than it is.

Stay on top of it as bills arrive -
1.Pay the bill
2. Take a picture of bill and save to the cloud in an "HSA folder". I use the format "YYYY MM DD description.jpg" so they sort by name.
3. Keep a spreadsheet with the title and amount.

Done.

I do this with the following modifications:

For each payment I save one document that includes, as appropriate:

• The bill
• Proof of payment
• Documentation of what it was for

My file naming convention adds a bit more info:

• YYYYMMDD description amount in whole dollar person’s initials

And for logging into a spreadsheet:

• Once a year I reference the file names to log only the amounts (one entry per each expense) for one year of expenses
• This is super fast because a) batching into a once a year process b) getting the amounts from the file names (vs. opening each doc), and c) logging only amounts (not all data)
• Why? This tracks how much in total reimbursements have been accumulated

If I ever do process reimbursements, I plan to do it in batches (for example one year of expenses). Then I’ll move these docs to a “reimbursed” folder and mark them as such on my spreadsheet.

Statistics: Posted by CalPoppy — Fri Oct 25, 2024 1:45 am — Replies 27 — Views 1111

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