How to Spend Your HSA: A Comprehensive Guide

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for medical expenses. But how exactly can you spend the funds in your HSA? Let's explore some tips and guidelines.

1. Qualified Medical Expenses:

You can use your HSA funds to pay for a wide range of medical expenses, including:

• Doctor visits
• Prescriptions
• Dental care
• Vision care

2. Over-the-Counter (OTC) Medications:

As of 2020, you can use your HSA funds to purchase OTC medications without a prescription. This includes items like pain relievers, cold medicine, and allergy medications.

3. Long-Term Care:

If you require long-term care services, you can use your HSA funds to pay for eligible expenses.

4. COBRA Premiums:

If you lose your job and elect to continue your employer-sponsored health coverage through COBRA, you can use your HSA funds to pay for the premiums.

5. Preventive Care:

Many preventive services are covered by HSAs, including vaccinations, screenings, and annual check-ups.

Remember, it's essential to keep records and receipts of your medical expenses when using your HSA funds. This will help you track your spending and ensure compliance with IRS regulations.

Health Savings Accounts (HSAs) are a fantastic tax-advantaged tool that not only helps you save for medical expenses but also promotes smart spending. Your HSA can be a lifeline when unexpected healthcare costs arise.

1. Qualified Medical Expenses:

Utilize your HSA funds for an extensive array of medical expenses, such as:

• Routine doctor visits
• Prescription medications
• Comprehensive dental treatments
• Vision care, including glasses and contacts

2. Over-the-Counter (OTC) Medications:

Thanks to a 2020 policy change, you can now buy OTC medications using your HSA without needing a prescription. This covers crucial items like pain relievers and allergy medications.

3. Long-Term Care:

For those in need of long-term care, your HSA funds can cover several eligible expenses, ensuring you have support for your ongoing medical needs.

4. COBRA Premiums:

If you find yourself unemployed, you can still use your HSA to pay for COBRA premiums, helping you maintain your health insurance coverage during transitions.

5. Preventive Care:

HSAs cover many preventive services, which include routine vaccinations, essential screenings, and annual physical check-ups, promoting overall health and wellness.

Always remember to keep organized records and receipts of your expenditures when using HSA funds. This practice will assist you in managing your spending effectively while adhering to IRS guidelines.