I think the second transaction does not reflect the actual cash transfers.
I would do it either this way:
2023-11-29 * "Dr. Hu" "pain killers"
receipt: "http://example.com/2023-11-29_Dr.Hu_meds.pdf";
Assets:Cash -100.00 USD
Expenses:Health 100.00 USD
2035-06-22 * "HSA withdrawal using eligible expenses"
Assets:HSA -100.00 USD
Assets:Cash 100.00 USD
But that doesn't track the amount you can withdraw.
Another option is to use the tracking accounts; I would do it like this:
2023-11-29 * "Dr. Hu" "pain killers"
receipt: "http://example.com/2023-11-29_Dr.Hu_meds.pdf";
Assets:Cash -100.00 USD
Expenses:Health 100.00 USD
Income:HSA-Eligible -100.00 USD
Assets:HSA-Eligible 100.00 USD
2035-06-22 * "HSA withdrawal using eligible expenses"
Assets:HSA -100.00 USD
Assets:Cash 100.00 USD
Assets:HSA-Eligible -100.00 USD
Expenses:HSA-Eligible 100.00 USD
Note that it's not super obvious that you can deduct the amounts you pay.
I have an example out-of-network case whereby the amounts I pay get
reimbursed by insurance and it's only the portion that isn't reimbursed
that I end up able to claim from the HSA. Here, I turned it into a doc for
you:
https://docs.google.com/document/d/1NyATal9CRrBDsII6sLdwCNNv0qcJmcPxYpNrlnjCjp8/edit
On Wed, Nov 29, 2023 at 2:24 PM Matt Carter <[email protected]>
wrote:
> I've been managing my finances with spreadsheets for a few decades. A
> couple weeks ago, a coworker introduced me to Beancount and double entry
> accounting and I've been pleased with how well it handles my accounts.
>
> One type of accounting that I haven't yet figured out how to do with
> Beancount (or double entry accounting in general) is tracking expenses that
> are eligible for withdrawal from a special purpose account like a Health
> Savings Account (HSA) or a 529 account. (These are USA tax advantaged
> accounts which allow funds to be invested and withdrawals can only be made
> tax- and penalty-free for a specific purpose, like health or higher
> education. Since funds are invested free of capital gains tax, withdrawals
> are often postponed till long after the eligible expense is incurred.)
>
> I can track my HSA in Beancount as an Assets:HSA account. As I incur
> HSA-eligible expenses, what's the best way to track those so that I know I
> can later withdraw them from the HSA? Suppose I pay $100 to a doctor for
> an office visit. In Beancount, I'd add a transaction that decreases my
> Assets:Cash account and increases my Expenses:Health account, each by
> $100. But what that fails to capture is that $100 became eligible for
> withdrawal from my Assets:HSA account.
>
> I suppose I could make it work by introducing 2 new accounts:
>
> 2023-11-29 * "Dr. Hu" "pain killers"
> receipt: "http://example.com/2023-11-29_Dr.Hu_meds.pdf";
> Assets:Cash -100.00 USD
> Expenses:Health 100.00 USD
> Liabilities:HSA-Eligible -100.00 USD
> Expenses:HSA-Eligible 100.00 USD
>
> Then, later, I could withdraw it from the HSA:
>
> 2035-06-22 * "HSA withdrawal using eligible expenses"
> Liabilities:HSA-Eligible 100.00 USD
> Assets:HSA -100.00 USD
>
> But the duplicate Expenses account makes me feel like the model doesn't
> fit reality well.
>
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