Health Savings Account HSA

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  • Updated 6 months ago
Health Savings Account HSA - How do you add those accounts without it adding to your income as they can only be used to pay medical related expenses
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Gary

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Posted 7 months ago

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Wayne Woodbury

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Gary, I don't think you do.  I have money directly added to my HSA every month.  I have an envelope set up for medical expenses.  When the money is depositied in my account, I record it as income and put it all in my medical expense envelope.  When I pay my medical bills, I take it from the medical expenses envelope.

Is there a reason you don't want to record it as income?
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Karisa Russell, Official Rep

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Hi Gary - If you're doing Wayne's suggestion of using an HSA Envelope along with the HSA Account, then you should add funds to each via an Income.

If that doesn't help, can you let us know how your real HSA account set up works? 
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featherstories

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I'll give you my way to track these, but it comes down to personal preference.  I have my HSA a separate account.  Due to the nature of a HSA, once you've allocated you contribution for the year, you are able to spend the entire yearly amount on Jan 1.  For this reason, at the beginning of the year, I make a one-time income transaction of the total (say $7,000) to my HSA account.  Over the year, I have a medical expense envelope that I budget the amount I'd like to spend and create transactions from that envelope and the HSA account.  As far as the amounts deducted from my check every payday, I just report the net as income over the year.  My husband has a FSA and we track his the same.  My goodbudget accounts always reconcile with the amount our HSA and FSA companies display.