Can I use my HSA for ____?

One of the cool things about health savings accounts (HSAs) is that you can use the tax-free money for stuff that might not be covered by your insurance policy.
And, yes, I realize that “cool” is probably not the right word to describe a financial product or service. (But, in fairness, saving money on taxes is pretty cool to me.)
So your health insurance policy will cover the normal medical issues and typically pays 100% of your costs on that stuff above your deductible. You get preventive care for free, but have to pay everything else up to the high deductible amount. So you self-insure those costs by putting money aside in your HSA (and, of course, that money is not taxed, so you get more bang for your buck).
Because of the tax benefits, the government determines how you can use the money in your HSA – in their language, they determine what are qualified expenditures and what are not. You could take that money out to buy a Harley, but you’ll pay the taxes on it plus a 20% penalty. So we want to stick with the qualified expenses.
What many people don’t realize however, is that the range of qualified expenses goes beyond what your health insurance policy covers. You can use it, for example, on dental or chiropractic care even if your health policy doesn’t cover that kind of care (and it likely doesn’t).
So now maybe the questions begin pouring in. Can I use my HSA for ____? Maybe. The only way to know for sure is to check with the IRS, which has published the inspirationally titled document: “IRS Publication 502.” It’s a handy guide for answering these kinds of questions and has been medically proven to aid those suffering from insomnia.
But, it really is worth skimming through or referencing for these kinds of questions. You can access the latest version here.
Don’t have an HSA? You first need a qualified high deductible health insurance plan and, yes, we can help with that. Contact us today!