How to handle HSA account

Hi All, 

I fee like I'm missing something obvious here. I added an HSA bank account this year. By the time I added it to YNAB, it already had funds contributed by me and my employer. I don't think (but could be wrong) those funds showed up as "to be budged" just because I added the account to YNAB.

I have always used a Medical category for spending prior to the HSA. 

Do you think it's true that the Medical category should have AT LEAST the budget matching the total amount in the HSA YNAB account?

If it doesn't, should I bump it up to match? But, by bumping it up, I feel like maybe I'm double dipping (in the safest way possible) from my total funds.

Help? #confused

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  • Hello, HoosierJeff !

    The key question here is whether your HSA account is a Budget account or a Tracking account. In other words, if you look in the left-hand sidebar on the YNAB website (or the Accounts tab on the mobile app), does the name of your HSA account appeared under BUDGET or TRACKING?

    If it's a Budget account, then yes, it's important for your Medical category to contain at least as much money as the balance of the HSA account, because that money can't be spent for non-medical expenses.

    If it's a Tracking account, then the money in the HSA isn't represented in your budget, so your Medical category only includes the money you've set aside for medical expenses in addition to what's in the HSA.

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  • Thanks so much, I don't have any tracking accounts, so I was blindly clicking on accounts trying to see that designation, lol. Now I see it clearly.

     

    This makes sense!

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