What Can You Not Use an HSA For? Explained in Detail

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while saving for the future. However, there are certain rules and restrictions on what you can use your HSA funds for. It's important to understand these limitations to avoid any potential penalties or tax implications. So, what can you not use an HSA for?

Here are some expenses that you cannot pay for using your HSA funds:

• Health insurance premiums (except for specific circumstances)
• Over-the-counter medications (without a prescription)
• Cosmetic procedures
• Non-prescription medical supplies
• Health club dues

These are just a few examples of expenses that are not considered eligible for HSA funds. It's essential to refer to the IRS guidelines or consult a financial advisor for a comprehensive list of qualified medical expenses.

While Health Savings Accounts (HSAs) are a fantastic way to save for medical expenses, it's crucial to know that not all expenses qualify for HSA reimbursement. For instance, most people are surprised to learn that health insurance premiums typically can't be paid using HSA funds, except in specific circumstances, like COBRA coverage or if you're retired and using premiums for Medicare.