Can You Buy Contacts with HSA Funds?

One of the common questions people have about Health Savings Accounts (HSAs) is whether they can purchase contacts with HSA funds. Understanding what expenses are eligible for payment using your HSA is crucial for maximizing the benefits of this flexible healthcare savings tool.

Contacts, like prescription glasses, are considered a qualified medical expense by the IRS, and therefore can be paid for using HSA funds. Here are a few key points to keep in mind when using your HSA to purchase contacts:

• Contact lenses must be prescribed by a licensed eye care professional: In order for the purchase of contacts to be classified as a qualified medical expense, you must have a valid prescription from an eye doctor.
• Over-the-counter contacts are not eligible: Only contacts that require a prescription are considered a qualified expense under an HSA.
• Keep receipts and prescription documentation: It's important to retain receipts and prescription details for your HSA records in case of an audit or verification.

By using your HSA funds to purchase contacts, you can save money on an essential healthcare expense while taking advantage of the tax benefits that come with HSA contributions. Be sure to consult your HSA provider or tax advisor for specific guidelines and regulations regarding eligible expenses.

When considering whether you can use your Health Savings Account (HSA) funds to buy contact lenses, it’s essential to understand what qualifies as a medical expense. According to the IRS, contact lenses are indeed seen as a qualified medical expense, similar to prescription glasses.