What does the government allow HSA funds to be used for?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while saving on taxes. One of the key benefits of an HSA is the ability to use the funds for a variety of medical expenses, both now and in the future. But what exactly does the government allow HSA funds to be used for?

Here are some of the qualified medical expenses that you can use your HSA funds for:

• Doctor's visits
• Prescriptions
• Dental care
• Eye exams and glasses
• Medical equipment
• Mental health services

Additionally, HSA funds can also be used for certain non-medical expenses without penalty, though these may be subject to income tax. Some examples include:

• Long-term care insurance premiums
• COBRA coverage
• Health insurance premiums while receiving unemployment benefits
• Medicare premiums (except for Medigap)

It's important to note that not all medical expenses are eligible for HSA reimbursement. For example, over-the-counter medications are no longer covered without a doctor's prescription. Non-qualified expenses may incur taxes and penalties if withdrawn before age 65.

Health Savings Accounts (HSAs) offer individuals an excellent way to save for medical expenses with some impressive tax benefits. Understanding what those funds can be used for is essential, so let's explore the expenses the government approves for HSA reimbursement.

Qualified medical expenses include a range of healthcare services that support your well-being. Here are some key examples:

• Doctor's visits, including specialist appointments
• Prescription medications and insulin
• Dental care, such as cleanings, fillings, and braces
• Vision care, including eye exams, glasses, and contact lenses
• Medical equipment like crutches, wheelchairs, and bandages
• Mental health services, including therapy sessions and psychiatric care

Additionally, your HSA funds can cover certain non-medical expenses, though these may be taxed. Such eligible non-medical expenses include the following:

• Premiums for long-term care insurance
• COBRA health insurance premiums
• Health coverage costs during unemployment
• Medicare premiums, aside from Medigap coverage

Keep in mind that not every medical expense qualifies for HSA reimbursement. For instance, over-the-counter medications generally require a prescription to be eligible. Withdrawals for non-qualified expenses could also lead to taxes and penalties for individuals under the age of 65.