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Investor Insights Blog|23 Medical Expenses Covered by an HSA

Tax Advantaged Accounts

23 Medical Expenses Covered by an HSA

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.


 

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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
  • Psychologist
  • Special education
  • Weight-loss program

(Related: How an investor grew his HSA quickly with alternative investing)

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.

(Related: Combat rising health care rates with an HSA)

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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