What Purchases Can I Make from an HSA?

If you have a Health Savings Account (HSA), you may wonder what purchases you can make using the funds in it. An HSA is a tax-advantaged savings account that allows you to set aside money for qualified medical expenses. Here's a breakdown of the purchases you can make from an HSA:

Qualified Medical Expenses

You can use your HSA funds to pay for a wide range of medical expenses, including:

• Doctor's visits
• Prescription medications
• Dental care
• Vision care
• Medical equipment
• Mental health services

Over-the-Counter Items

As of 2020, you can also use your HSA funds to purchase over-the-counter items without a prescription. This includes items like:

• Pain relievers
• Allergy medication
• First aid supplies
• Menstrual care products

Other Eligible Expenses

In addition to medical expenses, you can use your HSA funds for certain other expenses, such as:

• COBRA premiums
• Long-term care insurance premiums
• Acupuncture
• Smoking cessation programs

It's important to keep receipts for all HSA purchases to document that the funds were used for eligible expenses. If you use your HSA funds for non-qualified expenses, you may be subject to taxes and penalties.

If you have a Health Savings Account (HSA), you might be surprised to learn just how versatile your spending options can be. HSAs are designed to help you save money on health-related expenses while offering tax benefits. Beyond just medical bills, here's an expanded look at what purchases you can confidently make from your HSA.

Qualified Medical Expenses

Your HSA can cover an assortment of medical expenses, which include necessities like:

• Routine doctor's visits, ensuring you stay on top of your health
• Prescription medications to aid in your recovery and health management
• Dental care, ensuring your smile stays bright and healthy
• Vision care, including eye exams and corrective lenses
• Medical equipment, like crutches or blood pressure monitors
• Mental health services to support your emotional well-being

Over-the-Counter Items

Notably, with the recent changes in regulations as of 2020, you can now spend your HSA funds on many over-the-counter items without needing a prescription. These items include:

• Pain relievers for those unexpected headaches
• Allergy medications to keep you breathing easy
• First aid supplies to be prepared for minor accidents
• Menstrual care products, ensuring you’re always stocked up

Other Eligible Expenses

Moreover, your HSA funds can extend to cover certain non-medical expenses that contribute to your overall wellness, like:

• COBRA premiums, allowing you to continue health coverage after leaving a job
• Long-term care insurance premiums for peace of mind
• Acupuncture sessions, merging traditional practices with modern care
• Smoking cessation programs to help kick the habit

Always remember to keep your receipts for these purchases! Documentation is essential to prove the funds were used for qualified expenses, as using HSA money for non-qualified items can lead to tax penalties down the line.