You can spend the money of your HSA on a whole range of health care-related services, as defined by the IRS. For better understanding of eligible medical expenses review IRS Publication 502. Some of those include:
- Health plan deductibles and coinsurance
- Most medical care and services
- Dental and vision care
- Prescription drugs, over-the-counter medications, and insulin
- Medicare premiums (if age 65 or older) when you retire
You cannot use your HSA funds on illegal products or treatments. This includes medical marijuana, since it’s considered illegal by federal law. You also cannot use HSA funds to reimburse yourself for expenses paid for by another policy or plan.
Use In Retirement
Because an HSA is portable, you can use it in your retirement to pay for medical expenses, instead of pulling from your 401(k) or other retirement funds to cover them. Once you are 65 years old you can use the money for anything, you just pay normal income tax on the amount withdrawn, so it can be a powerful vehicle to build wealth for your golden years.
