Surprising Uses for Health Savings Accounts

Health Savings Accounts (HSAs) are savings accounts that people in the United States can use to pay for healthcare expenses. The money people contribute to these accounts are pre-tax, meaning it is not counted as income.

Here are some of the advantages of HSA’s:

• Tax benefits
  Money contributed to an HSA is tax-deductible, and interest earned and withdrawals for qualified medical expenses are tax-free. 
  

• No expiration date
  HSA contributions don't expire, and you can keep your HSA even if you change jobs or retire. 
  

• Investment potential
  You can invest your HSA funds in interest-bearing accounts, mutual funds, stocks, or bonds. 
  

• Use for family
  You can use your HSA to pay for qualified medical expenses for your spouse and dependents, even if your plan doesn't cover them. 
  

• Retirement savings
  After you turn 65, you can withdraw funds from your HSA for any reason without penalty. HSAs aren't subject to required minimum distributions. 
  

• Carry over year after year
  Unlike a flexible spending account (FSA), your HSA balance can continue to grow year after year. 

You can contribute to an HSA if you're enrolled in an HSA-eligible plan, which is usually a High Deductible Health Plan (HDHP) like most employers offer. You can contribute up to the IRS maximum amount, plus an extra $1,000 if you're 55 or older. In 2024, you can contribute up to $4,150 if your HDHP covers just you and $8,300 if you have a health plan that covers your family. In 2025 those amounts go up to $4,300 and $8,550 for individuals and families respectively.

You can’t contribute to an HSA when you’re on Medicare. But you can use the money you saved in it one expenses once you are on Medicare.

Here is a list of some of the things you can purchase with money from an HSA:

• Ambulance services

• Bandages

• Blood-sugar tests

• Crutches

• Gynecologist services

• Hearing aids and batteries

• Hospital care

• Insulin

• Laboratory fees

• Medicines prescribed by a doctor

• Surgery

• Vaccinations

• X-rays

You can also pay for dental and vision expenses. Pretty typical so far. What you’d expect.

However, there are some some surprise medical expenses that you may not know are covered. You can also pay for chiropractic care, hand sanitizer, and holistic healer services.

Sounds interesting. What’s even more interesting is that you can use an HSA for weight loss expenses. That means food and exercise. For expenses like this you need a letter of ‘medical necessity’ from a doctor.

There are businesses out there like the HSA Store and Truemed that can also help guide you to use HSA funds for your own personal preventive health.

Finding a doctor that is open to preventive care like good food and exercise equipment will help obtain that letter of ‘medical necessity’. Hopefully every doctor is open to this.

Definitely check with your accountant for your personal tax situation. I am NOT a person qualified to give tax advice.

It seems to me that the only thing better than working to improve your health is to work on it without paying taxes.