Personal Protective Equipment (PPE) for the primary purpose of preventing the spread of COVID-19 (i.e.cold treatments, pain relievers, sinus medications, etc.) Over-the-counter (OTC) treatments containing medicine (i.e.You cannot use your HSA to pay for Medigap insurance premiums.Use your HSA to pay for the employee share of employer-sponsored healthcare premiums (provided that the employee share is not deducted pre-tax).Reimburse yourself directly from your HSA for Medicare premiums deducted from your Social Security payment.Given that Medicare does not cover all of your medical expenses, most HSA owners over age 65 continue to use their HSA funds for eligible medical expenses to ensure they receive the maximum benefits from their HSA.Īt age 65, you can use your HSA to pay for Medicare Parts A, B, and D as well as Medicare HMO premiums tax-free and penalty-free.Withdrawals made for other purposes will be subject to ordinary income taxes.In order to be both tax-free and penalty-free, the distribution must be for an eligible medical expense.Changes at Age 65 DistributionsĪt age 65, you can take penalty-free distributions from your HSA for any reason. Note: If you pay for anything other than eligible expenses with your HSA, the amount will be taxable, and you will be required to repay the amount and pay an additional tax penalty. You should keep all your receipts and pertinent documentation to prove your HSA was used for eligible medical expenses. How should I keep track of my eligible expenses? For the complete list of eligible and ineligible expenses, visit see IRS Publications 502 and 969. For more information, see the HSA Eligible Expenses flyer. The HSA can only be used to pay for eligible medical expenses incurred after your HSA was established. Eligible expenses can be incurred by you, your spouse, or qualified dependents. An eligible expense is a health care service, treatment, or item the IRS states can be paid for without taxes.īelow is a partial list of eligible expenses that are reimbursable through a Health Savings Account (HSA).
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