What Medical Purchases Can I Make with my HSA?

Health Savings Accounts, or HSAs, are a great way to save for medical expenses while enjoying tax benefits. One common question many people have is what medical purchases can be made using their HSA funds. Here's a breakdown:

With an HSA, you can use the funds to pay for a wide range of medical expenses, both routine and unexpected. Some of the eligible medical purchases include:

• Doctor visits and consultations
• Prescription medications
• Hospital and surgical costs
• Dental care and orthodontics
• Eye care, including eyeglasses and contact lenses
• Mental health services

These are just a few examples of the many medical expenses that are eligible for payment using your HSA funds. It's important to note that not all healthcare expenses may be covered, so it's always a good idea to check with your HSA provider or IRS guidelines for clarification.

Remember, using your HSA funds for non-medical expenses could result in penalties, so it's essential to use the funds only for eligible medical purchases.

Health Savings Accounts (HSAs) not only provide you with a smart way to save for future medical expenses but also offer some significant tax advantages that can maximize your savings. So, what can you actually purchase with your HSA funds? Here’s a closer look at eligible medical expenses:

• Routine check-ups and specialist consultations
• Prescription drugs and necessary over-the-counter medications
• Costs associated with surgeries and hospitalization
• Dental work, including preventative care and orthodontics
• Vision care expenses such as glasses, lenses, and eye exams
• Therapy and mental health services

While these are just a handful of the eligible expenses, it's crucial to ensure you're aware of the wider range of services that qualify. Particularly, not all health-related purchases are covered, and guidelines can change, so checking with your HSA provider or IRS rules regularly is wise!

One important reminder: using HSA funds for non-medical purposes can lead to substantial taxes and penalties, so keep your spending strictly within the realm of qualifying medical expenses.