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HSA

How to save medical receipts for HSA

Do you want an average HSA or a supercharged retirement account?

This is one of the best tax loopholes (of course legal!).

If you want to make your HSA a supercharged retirement account you need to withdraw money from HSA once it has been compounded tax-free for a number of years rather than withdrawing every year or suing that debit card you got from your HSA provider.

And when you withdraw you need a backup of which healthcare related expenses you are withdrawing. So let’s say it is 2035 and your HSA account has compounded for the last 20 years and now you want to withdraw a chunk claiming that the expenses were healthcare eligible expenses which happened from 2015-2020.

When you withdraw IRS may ask for information on why you are withdrawing this money. So you need to have all the receipts backup stored.

For those people who are only saving physical receipts, I think they are good for a few years but you might lose them or they can get discolored (especially receipts from retail stores or pharmacies like Walgreens & CVS). So it is much better to have scanned copies of the receipts.

This is how I do it. This is my method but you can decide to make your own method but make sure you have digital copies!

Use Scannable app or Dropbox app to scan receipts (both apps are free). Scannable directly uploads to Evernote.

Evernote lets you upload a certain amount (for example 60MB) every month which is more than sufficient for HSA receipts. This way you can use Evernote account for free. I have a premium subscription since I used Evernote for other tasks also.

Dropbox account is free too with enough space for saving years of receipts.

You can use other services like pcloud, one drive, google drive to save the backup.

I suggest when you have the digital backup you save in 4 locations. I know it is overkill but usually doesn’t take much time.

  • Use Scannable app scan the receipt and it automatically stores in Evernote (cloud backup #1)
  • Save the Evernote backup in dropbox, google drive or some other service (cloud backup #2)
  • Save the Evernote backup on your local computer (Physical backup #1)
  • Save the Evernote backup in a portable hard drive (physical backup #2)

You do not need to do all the 4 backups for each of the receipts every time you get a bill or receipt. I only use scannable app from my iPhone camera and save it to Evernote.

I save the Evernote backup automatically at a scheduled time (usually a month).

You do not need to do all the 4 backups for each of the receipts every time you get a bill or receipt. I only use scannable app from my iPhone camera and save it to Evernote.

I save the Evernote backup automatically at a scheduled time (usually a month)

Then I set a reminder on my calendar to backup the data every quarter to my computer and my portable hard drive (so that’s like 4 times a year only).

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