Skip nav to main content.

For Health Savings Accounts, what are qualified medical expenses?

In order for HSA assets to retain their tax-free status, they may only be withdrawn and used for certain expenses, including:

  • Actual medical expenses, including doctor visits, prescriptions, transportation to get medical care, and dental care
  • Long-term care insurance
  • Healthcare coverage when unemployed
  • Certain continuation-of-benefit healthcare coverage
  • Certain health insurance after age 65

Non- qualified uses of HSA assets are subject to taxation and an additional 20% penalty unless the HSA account beneficiary is age 65 or older, dies, or is disabled.

For more information, review IRS Publication 502.

Related Items

Who is eligible to participate in Health Savings Accounts? What happens if you don’t use the money in an HSA (Health Savings Account) by the end of the year? Where can I find concise information about HSAs (Health Savings Accounts)? Will my Health Savings Account be charged a fee? Health Savings Account (HSA) rates What is a Health Savings Account, why would I need an HSA, and how do they work? What account number should I use to initiate a direct deposit or electronic debit to my health savings account (HSA)?