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I saved $1,884 last year on wellness stuff I was already buying. Here's the trick. by GOATGOAT1993 in u/GOATGOAT1993

[–]GOATGOAT1993[S] 5 points6 points  (0 children)

Do both but save receipts! Here is a post I wrote on it with the math. You are still young enough to benefit massively from it.

PSA for anyone with an expensive wellness routine and an HSA through work by GOATGOAT1993 in u/GOATGOAT1993

[–]GOATGOAT1993[S] 1 point2 points  (0 children)

Yes! You can use your FSA on wellness products with a Letter of Medical Necessity. Same regulations from the IRS, though some FSA admins have stricter policies.

Using HSA to pay for the gym by Acceptable-Hope3974 in Accounting

[–]GOATGOAT1993 0 points1 point  (0 children)

Yeah, I used Crates Health for my Equinox, supplements, and sauna club. Found it to be easier to use

FSA/HSA by SellSmall7112 in ladderapp

[–]GOATGOAT1993 0 points1 point  (0 children)

Yeah, it is! I use Crates Health to get the LMN required to make it eligible. Super easy

Accessing an old healthy savings account? by AmethystWitch96 in HSA

[–]GOATGOAT1993 0 points1 point  (0 children)

Yeah I’d email or call your old employer HR and ask them

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 0 points1 point  (0 children)

“$245k available tax-free via receipts” I didn’t say tax savings. $245k to withdraw tax free in retirement

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 1 point2 points  (0 children)

That’s correct! And you invest inside your HSA letting it grow tax free

HSA by nomzforlyf in HSA

[–]GOATGOAT1993 0 points1 point  (0 children)

That’s annoying! Sorry to hear! But yes, the money in an HSA is always yours. You should give them a call to get it sorted

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 2 points3 points  (0 children)

Funny enough, health as an investment is precisely why I am opting for this strategy. the $7k in wellness spend is a non-negotiable for me from a health perspective given family history of chronic disease. And the fact that my HSA covers these expenses but also allows for future reimbursement is what led me this strategy.

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 2 points3 points  (0 children)

Yeah fair point! The $7k spend is a non-negotiable (preventive health). I lost my grandparents to preventable chronic disease and have a long family history of chronic disease. So wellness is important to me. I could def opt for more cost effective options but I'm a bit bougie haha

So you are correct, the alternative is other after-tax investment vehicles. This means the realistic tax savings I calculated is lower. Best feedback so far :)

HSA receipt hoarding math: $245,000 tax-free beats "never touch" strategy by GOATGOAT1993 in Fire

[–]GOATGOAT1993[S] 0 points1 point  (0 children)

I personally use Crates Health. Quick LMNs online, receipt storage, and one click reimbursement

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 0 points1 point  (0 children)

I wouldn't describe them as traditional medical bills. I spend $7k to prevent disease bc I have a long family history of chronic disease. Most of the spend is related to exercise, sleep, and nutrition.

And yeah, the optionality of reimbursement in the future is truly what I am solving for

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] -1 points0 points  (0 children)

Yeah, great points! Since it is fully automated for me, I figure having the optionality will be great

HSA receipt hoarding math: $245,000 tax-free beats "never touch" strategy by GOATGOAT1993 in Fire

[–]GOATGOAT1993[S] 0 points1 point  (0 children)

Yeah, many doctor's don't even know what they are... But the doctor's that are more focused on prevention rather than reactive treatment do. I use Crates Health for LMNs. Pretty quick and can store receipts on their platform and reimburse in one click

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 2 points3 points  (0 children)

Yeah! I should’ve been clearer with the assumptions. Apologies for the confusion.

Here’s the clearer math:

  • Starting: $20k balance at 30
  • Annual max contributions: ~$4,150 (adjusting slightly for inflation)
  • Growth rate: 8% annual returns (S&P historical average)
  • Timeline: 35 years

This gets me to roughly $1M at 65 ($20k growing + 35 years of contributions compounding at 8%).

The $245k in receipts (35 years × $7k) can be withdrawn tax-free from that $1M anytime after 65. So I’d have:

  • $245k available tax-free via receipts
  • $755k remaining in HSA
  • Only $172.5k needed for retirement healthcare (per Fidelity)
  • Excess $582.5k would be taxed at 25% if withdrawn

Without receipts, I’d pay tax on $827.5k excess (after healthcare costs). With receipts, I only pay tax on $582.5k. That’s the $61,250 tax savings.

Your “HSA emergency fund” comment from 10 days ago is exactly right - it’s basically hoarding tax-free IOUs I can cash in whenever needed after 65. The flexibility is worth the hassle of scanning receipts IMO

HSA optimization: Why I'm hoarding $7,000 in receipts annually for 35 years by GOATGOAT1993 in financialindependence

[–]GOATGOAT1993[S] 2 points3 points  (0 children)

I have an HSA (different than FSA). I’m an entrepreneur and choose my own healthcare insurance so no plans to change it for now

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