The HSA Report Card
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The HSA Report Card Blog

The (Shoe)box Strategy

By delaying reimbursement for qualified medical expenses, you can save toward a future financial goal or a dream. Because there is no time limit with an HSA to reimburse yourself for qualified medical expenses that you pay out-of-pocket, you can accumulate the reimbursable amount until you reach a determined goal while building tax-free earnings.

1. Pay medical expenses out-of-pocket

By paying medical expenses out-of-pocket, you allow the funds in your HSA to continue to build and earn tax-free interest.

2. Archive your receipts

Keep track of your medical receipts, explanations of benefit and invoices by storing them online or in a "(shoe)box."

3. Reach your savings goal

Track your accumulated reimbursable expenses online, until you reach the desired amount.

4. Cash in

Submit a reimbursement for accumulated qualified expenses and receive a tax-free payment for the amount of out-of-pocket expenses you paid.

This video by Health Savings Administrators does a great job of explaining how it works.

Noe Padilla