Who decides whether the money I’m spending from my HSA is for a “qualified medical expense?”
You are responsible for that decision, and therefore should familiarize yourself with what qualified medical expenses are (as partially defined in IRS Publication 502) and also keep your receipts in case you need to defend your expenditures or decisions during an audit.
What happens if I don’t use the money in the HSA for medical expenses?
If the money is used for purchases other than for qualified medical expenses, the expenditure will be taxed and, for individuals who are not disabled or over age 65, subject to an additional penalty.
Are dental and vision care qualified medical expenses under a Health Savings Account?
Generally, yes. However, cosmetic procedures, like cosmetic dentistry, would not be considered qualified medical expenses.
Can I use the money in my HSA to pay for medical care for a family member?
Yes, you may withdraw funds to pay for the qualified medical expenses of yourself, your spouse or a dependent. This is one of the great advantages of HSAs.
Can I use my HSA to pay for my child’s expenses?
Health care reform did not change the rules governing HSAs when it comes to paying for a child’s medical expenses. This means you can only use your HSA to pay for your child’s medical expenses if your child qualifies as your tax dependent (other than the income limitation).
How can my child qualify as my tax dependent?
There are two ways a child can be your tax dependent. The first way is if your child is considered a Qualifying Child and the second way is if your child is considered a Qualifying Relative. The following lists the requirements for each category. I. Qualifying Child a) The child lives with you for more […]
Can I use my HSA to pay for medical services provided in other countries?
Yes.
Can I pay my health insurance premiums with an HSA?
You can use your HSA to pay health insurance premiums if you are collecting Federal or State unemployment benefits, or you have COBRA continuation coverage through a former employer. HSA holders age 65 or over (whether or not they are entitled to Medicare) may use HSA funds for any deductible health insurance (e.g., retiree medical […]
Can I purchase long-term care insurance with money from my HSA?
An HSA can pay or reimburse the cost of qualified long-term care insurance premiums. However, the amount considered a qualified medical expense depends on your age. Click here for annually indexed LTC premium limitations. For Example: Kelly, age 41, pays premiums totaling $1,400 in 2021 for a qualified long-term care insurance contract. The limit in […]
I have an HSA but no longer have HDHP coverage. Can I still use the money that is already in the HSA for medical expenses tax-free?
Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.