HSA – You can use your HSA to pay for eligible health care, dental, and vision expenses for yourself, your spouse, or eligible dependents (children, siblings, parents, and others who are considered an exemption under Section 152 of the tax code).

What happens if I accidentally use my HSA card for non medical expenses?

You can be charged a 20% penalty if you use your HSA funds to pay for a non-qualified medical expense, which would have been $70 in my case (not to mention traditional income taxes would apply, too).

What medical expenses can be paid from HSA?

Common IRS-Qualified Medical Expenses

• Acupuncture.
• Ambulance.
• Artificial limbs.
• Artificial teeth*
• Birth control treatment.
• Blood sugar test kits for diabetics.
• Breast pumps and lactation supplies.
• Chiropractor.

Can I use my HSA to pay for a friend’s medical expenses?

You can use HSA funds for qualified medical expenses for any person you could have claimed as a dependent on your return except when the person filed a joint return, had a gross income of $3,700 or more, or if you or your spouse, if filing jointly, can be claimed as a dependent on someone else’s return.

When to use HSA money for medical expenses?

As long as you document your qualified medical expenses, HSA reimbursement can be your ticket to huge savings. FSAs allow you to pay tax-free for qualified medical expenses once your plan year starts and your annual election goes into your account.

Is it OK to spend HSA funds on your spouse?

This is especially true if you have self-only coverage: even if not covered by an HDHP, medical expenses spent on your spouse are considered qualified. The benefit is your spouse can consume medical care on a pre-tax bases.

What happens to the money in a health savings account?

Any money that is in your account at the end of the year remains in your account to pay for future qualified medical expenses. And it does so indefinitely. The account and its funds belong to you, and you retain ownership even if you change health insurance plans, change jobs, or retire.

When to pay out of pocket with an HSA?

FSAs allow you to pay tax-free for qualified medical expenses once your plan year starts and your annual election goes into your account. HSAs let you reimburse yourself tax-free by paying out of pocket and keeping your receipts if your HSA funds are low.