What Can You Use HSA Money for in 2020?

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HSA basics and eligible family uses

If you have a Health Savings Account (HSA), you may wonder what expenses you can use your HSA funds for in 2020. An HSA is a valuable tool that allows you to save money tax-free for medical expenses for yourself, your spouse, and your dependents.

Qualified medical expenses list for 2020

Here are some common qualified medical expenses that you can use your HSA money for in 2020:

• Doctor visits and copays
• Prescriptions
• Dental care
• Vision care, including glasses and contact lenses
• Medical equipment, such as crutches or blood pressure monitors
• Mental health services
• Chiropractic care
• Laboratory fees

Here’s a detailed list of qualified medical expenses that your HSA funds can cover in 2020:

• Office visit fees, including copays and deductibles.
• Prescription medications and over-the-counter drugs when prescribed by a doctor.
• Dental treatments, such as fillings, crowns, and orthodontics.
• Vision-related expenses, including prescription glasses, contact lenses, and eye exams.
• Necessary medical equipment, for instance, wheelchairs and blood glucose monitors.
• Therapeutic services like counseling and therapy sessions.
• Chiropractic services for musculoskeletal issues.
• Fees associated with laboratory work and diagnostic testing.

IRS rules, exclusions, and recordkeeping

It's important to keep in mind that the IRS has specific guidelines on what expenses are considered qualified for HSA reimbursement. Some expenses that are not covered include cosmetic procedures, vitamins, and general health and wellness products.

However, certain preventive care services, such as annual check-ups and screenings, are typically covered by your HSA, even if you haven't met your deductible.

Remember, it's always a good idea to keep receipts and records of your medical expenses when using your HSA to ensure compliance with IRS rules.

If you’re leveraging a Health Savings Account (HSA), it’s essential to understand the various expenses you can utilize these funds for, especially in 2020. HSAs offer incredible tax advantages, allowing you to set aside money that can help offset a wide range of medical costs.

Always ensure you're aware of the IRS guidelines to avoid unexpected penalties. Items not covered include aesthetic treatments or supplements designed for overall health. However, keep in mind that preventive services like annual physicals are generally covered without needing to meet your deductible first.

For meticulous tracking, save all receipts and records related to your medical expenses to comply with HSA regulations.