What Am I Allowed to Pay for with HSA? - A Comprehensive Guide

If you have a Health Savings Account (HSA) or are considering opening one, you may wonder what expenses are eligible for payment using funds from your HSA. An HSA is a tax-advantaged account that allows you to save money for qualified medical expenses. Here is a comprehensive guide to what you can pay for with your HSA:

Eligible Expenses:

• Doctor visits and consultations
• Prescription medications
• Dental care, including cleanings, fillings, braces, and more
• Eye exams, glasses, and contact lenses
• Mental health services
• Physical therapy
• Medical equipment like crutches, wheelchairs, and blood pressure monitors
• Smoking cessation programs
• Laser eye surgery
• Acupuncture

Non-Eligible Expenses:

• Over-the-counter medications (without a prescription)
• Cosmetic procedures
• Health club dues
• Maternity clothes
• Non-prescription sunglasses
• Funeral expenses

It's important to keep in mind a few key points when using your HSA:

• Be sure to save your receipts and documentation for all HSA expenses, as you may be required to provide proof that the expense was for a qualified medical purpose
• Consult with your HSA administrator or financial advisor if you are unsure whether a particular expense is eligible
• Using your HSA funds for non-qualified expenses may result in penalties and taxes

By understanding what you can and cannot pay for with your HSA, you can make the most of this valuable savings tool and take control of your healthcare expenses.

Understanding HSA Usage: When you utilize your Health Savings Account (HSA), it's essential to recognize which medical expenses qualify to ensure you're maximizing your savings potential and adhering to IRS regulations. This knowledge not only helps in managing your healthcare budget but also supports your ability to plan for unexpected health expenses.