What Can You Buy with an HSA?

Health Savings Accounts (HSAs) are a powerful tool for managing healthcare expenses while enjoying tax advantages. One common question that arises is what you can buy with an HSA. Let's explore the possibilities!

With an HSA, you can use the funds to pay for a wide range of qualified medical expenses. Here are some of the items and services you can purchase:

• Prescription medications
• Doctor visits and consultations
• Dental and vision care
• Hearing aids and exams
• Medical supplies (bandages, crutches, etc.)
• Mental health services
• Chiropractic care

It's important to remember that HSA funds should only be used for eligible medical expenses to avoid penalties. To make it easier to manage your HSA spending, consider keeping receipts and documentation of your purchases.

Additionally, if you're 65 or older, you can use your HSA funds for non-medical expenses without penalty, although income tax will apply.

Health Savings Accounts (HSAs) are an incredible resource for those looking to manage healthcare costs effectively while reaping tax benefits. Understanding what expenses qualify for HSA funds can empower you to make the most out of this financial tool. Let's dive into some of the purchases you can make!

With your HSA, you can cover a variety of eligible medical expenses. Here's a detailed list of items and services you can pay for:

• Prescription medications that you need regularly for chronic conditions
• Visits to your healthcare provider for check-ups or consultations
• Dental treatments like cleanings, fillings, and orthodontics
• Vision care, including glasses and contact lenses
• Hearing aids and the associated hearing examinations
• Medical supplies, such as first-aid kits, bandages, and diabetes testing equipment
• Services for mental health, including therapy and counseling sessions
• Chiropractic care to address musculoskeletal issues and pain relief

Remember, it's crucial to use your HSA funds strictly for qualified medical expenses to avoid any potential penalties from the IRS. Keeping receipts and detailed documentation can simplify this process greatly!

For those aged 65 or over, it's good to know that HSA funds can also be applied toward non-medical expenses without incurring penalties, although you’ll need to pay income tax on those withdrawals.