Understanding HSA Qualified Expenses: What You Need to Know

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare costs, but it's important to know what expenses qualify for HSA use. HSA qualified expenses include:

• Medical services such as doctor visits, hospital stays, and surgery
• Prescription medications
• Medical equipment like crutches or braces
• Dental care including cleanings, fillings, and braces
• Eye care like glasses, contact lenses, and eye exams

It's essential to keep track of receipts and documentation for these expenses to ensure they meet the IRS guidelines for HSA eligibility. Non-qualified expenses may incur penalties, so understanding what qualifies is crucial.

Health Savings Accounts (HSAs) provide a dual advantage: tax benefits on contributions and the ability to use those funds for qualified medical expenses. Understanding what expenses are considered 'qualified' is essential for maximizing your HSA. Qualified expenses include a range of health-related costs such as:

• Medical services like doctor visits and surgeries, ensuring your health needs are met without breaking the bank.
• Prescription medications, which can often be a significant part of your healthcare expenses.
• Medical equipment such as crutches or braces that help facilitate recovery and mobility.
• Dental care expenses, including regular check-ups, fillings, and orthodontic treatments, which may not be covered by standard insurance plans.
• Vision care, which covers everything from routine eye exams to glasses and contact lenses, promoting overall eye health.

It's critical to save all your receipts and documentation for these costs, as proper record-keeping ensures compliance with IRS guidelines for HSA eligibility. Remember, spending HSA funds on non-qualified expenses could lead to penalties and tax implications, making it vital to stay informed about what qualifies.