How long do you need to keep medical receipts for HSA in California?

When it comes to managing your HSA (Health Savings Account), it's essential to keep track of your medical receipts. In California, the duration for which you need to keep your medical receipts varies based on different factors.

Typically, you are advised to keep your medical receipts for at least 3-7 years for HSA purposes in California. This timeframe allows you to have access to your records in case of an audit or when you need to verify any past healthcare expenses.

It's important to note that the IRS has a statute of limitations of three years for auditing tax returns, but in cases of discrepancies or fraud, this period can be extended to six years or indefinitely. Therefore, it's recommended to keep your medical receipts for a longer duration to be on the safe side.

To effectively manage your Health Savings Account (HSA) in California, keeping your medical receipts is essential. You should hold onto these records for a minimum of 3-7 years after the expenses have been incurred. This duration not only helps you during an IRS audit but also provides peace of mind in case you need to revisit your financial decisions regarding healthcare.