What can I spend my HSA money on? A Comprehensive Guide

If you have a Health Savings Account (HSA), you might be wondering about the types of expenses you can cover with your HSA funds. An HSA is a tax-advantaged account that allows you to save money for medical expenses. Here's a comprehensive guide on what you can spend your HSA money on:

Qualified Medical expenses:

• Doctor's visits
• Prescriptions
• Dental treatment
• Vision care
• Hearing aids
• Mental health services
• Medical equipment

Non-Medical Expenses:

• Long-term care insurance premiums
• Certain COBRA premiums
• Health insurance premiums if unemployed
• Medicare premiums (except for Medigap)

Other Expenses:

• Over-the-counter medications with a prescription
• Smoking cessation programs
• Weight-loss programs for a specific disease diagnosed by a physician

Remember, if you use your HSA funds for non-qualified expenses before the age of 65, you may owe income tax and a 20% penalty. However, after age 65, you can use the funds for non-medical expenses without penalty but will owe income tax.

Are you curious about how to make the most out of your Health Savings Account (HSA)? This tax-advantaged account can be a valuable financial tool for managing medical expenses. With your HSA money, you can cover a range of qualified medical costs, including:

Qualified Medical Expenses:

• Routine doctor's visits
• Necessary prescriptions
• Dental treatments, like cleanings and fillings
• Vision care, including glasses and contact lenses
• Hearing aids and associated services
• Mental health services, such as therapy sessions
• Medical equipment, from crutches to wheelchairs

In addition to these, your HSA can also help with certain non-medical expenses:

Non-Medical Expenses:

• Premiums for long-term care insurance
• Certain premiums for COBRA continuation coverage
• Health insurance premiums if you're currently unemployed
• Medicare premiums, except for Medigap policies

Furthermore, there are other unique expenses you can also cover. Be sure to check out:

Other Expenses:

• Over-the-counter medications, provided you have a prescription
• Smoking cessation programs aimed at helping you quit
• Weight-loss programs prescribed for specific medical conditions

Just keep in mind, using HSA funds for non-qualified expenses before you turn 65 can lead to income tax and a 20% penalty. But after you turn 65, you can spend your HSA dollars that way without a penalty, although income tax will still apply. With this knowledge, manage your health care costs more effectively!