What OTC Drugs Does the IRS Cover for HSA? Your Complete Guide

Health Savings Accounts (HSAs) are a great way to save for medical expenses, and it's important to know what Over-the-Counter (OTC) drugs the IRS covers for HSA use.

When it comes to OTC drugs that are eligible for HSA funds, the IRS has specific guidelines in place. Here are some key points to keep in mind:

• OTC drugs must be used to treat a specific medical condition or illness
• Items such as vitamins, supplements, and cosmetics are generally not eligible
• Prescription drugs are always eligible for HSA use

Some common OTC drugs that the IRS typically covers for HSA include:

• Pain relievers like acetaminophen and ibuprofen
• Allergy medications such as antihistamines
• Cold and flu remedies

It's essential to keep receipts for all OTC drug purchases to provide documentation for HSA withdrawals. Be sure to check with your HSA provider for a list of eligible expenses and any specific requirements they may have.

Health Savings Accounts (HSAs) offer a tax-advantaged way to set aside money for health care, but many people are confused when it comes to using those funds for Over-the-Counter (OTC) drugs. Understanding what the IRS covers can help you maximize your savings.