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.