Health Savings Accounts (HSAs) can be a powerful tool to save and pay for health plan-related expenses and save on taxes.
You might be aware that HSAs can be used to pay qualified medical care expenses, but are you aware of all the expenses that qualify?
According to IRS Publication 969, you may request tax-free distributions from your account to pay for or be reimbursed for qualified medical expenses.
The list of eligible expenses are generally the same expenses that qualify for medical and dental expense tax deductions. Those expenses are listed in IRS Publication 502.
Free Health Savings Account Guide
23 Out of 70-Plus Qualified Medical Expenses Covered by an HSA
Acupuncture
Alcohol/drug addiction treatment
Ambulance
Artificial limb
Artificial teeth
Bandages
Braille books and magazines
Breast pumps and Supplies
Chiropractor
Crutches
Dental treatment – preventive care as well as other procedures, braces included
Eye exam, eye surgery, eyeglasses, contacts
Feminine hygiene products
Guide Dog or other service animal
Hearing aids
Home care
Laboratory Fees
Lead-Based Paint Removal
Long-term care
Medicine: Prescription drugs as well as many over-the-counter (OTC) drugs
Which Medical Expenses Are Not HSA Qualified Expenses?
Here are a few of the expenses that the IRS says may not be paid with a Health Savings Account:
Cosmetic surgery
Funeral expenses
Hair transplant
Insurance premiums (Certain exclusions apply – see Publication 502 for details)
Maternity clothes
Teeth whitening
For the complete list of qualified medical expenses you can pay with HSA funds – as well as expenses that don’t qualify – see IRS Publication 502. For more information on the Health Savings Account, see IRS Publication 969.
As always, if you have a question about how this information applies to your situation, consult your tax advisor or financial professional.
Video: Health Savings Account FAQs
1
What types of accounts does Equity Trust hold?
Equity Trust holds a variety of IRAs, as well as other self-directed accounts, including:
Traditional IRA
Roth IRA
SIMPLE IRA
SEP IRA
Solo 401(k)
Roth Solo 401(k)
Health Savings Account (HSA)
Coverdell Education Savings Account (CESA)
2
What investment options are possible with an Equity Trust account?
Some of the investments Equity Trust clients make using their self-directed accounts include real estate, tax liens, digital currencies such as Bitcoin, private lending, purchasing notes, private placements, precious metals, forex and other investment options that are permissible under IRS guidelines.
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