Medical Savings Account


W

William

I have a medical savings account through my employer. Although I do not
catagorize my paychecks, I would like to create a MSA new account. When I
click Create New Account, nothing seems to correspond. What should I do?
 
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D

Dick Watson

A simple cash account probably works. (It's what I use.) But if you don't
categorize your paychecks, how's your money going to get in the MSA account?
 
W

William

I may have to make a new one each year. I assume that I can put a starting
amount in it (the total for the year) and then transfer out of it. Or, maybe
I'll get to the point of actually using the paycheck feature. Right now I'm
still trying to figure out how to balance checking accounts!

Thanks.
William
 
D

Dick Watson

That would work. I'm not sure why you'd need to recreate the account each
year. Fill it up with some income transaction, then drain it out with
transfers and, if you lose some at the end of the year, an expense.
 
W

William

I do have an expense category call "deep hole" that I use to classify
"unspent" money in my pocket cash account. Perhaps I could also make "deep
hole" an income account and replenish the medical plan each year from that
source.

Best,
William
 
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K

Kevin Campbell

Why have a special expense account for unspent cash in your pocket? That
should just be money in your Cash account. If you have $10 in your pocket
then your cash account should show a $10 balance. Just like your checking
account shows a balance when there is money in it. When you spend the cash
in your pocket you would enter a debit transaction in the cash account
showing how much you spend and for what. For instance, if you spend $5 cash
for gas then you would enter into the cash account a $5 debit transaction
with a category of Automobile:Gasoline. If the money was spend on various,
sundry items then the category for the transaction could be Miscellaneous.
It depends on how detailed you want to be in tracking where your money goes.

I don't usually use the Cash account for my everyday pocket cash. When I
take cash out of my checking, for instance, I use a Payee of Cash and a
category of Cash Withdrawal and leave it at that. I don't bother trying to
track the individual purchases that I make with that cash. Only if I take
cash out for a particular purpose and have to hold on to it for a day or so
do I use the Cash account. Then I basically transfer the cash from the
checking to the cash account then when I spend the cash for the reason I
needed it I withdraw it from the Cash account and use the appropriate
expense category to track it.

Kevin
 
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