What type of health expense can be covered by HSA funds?

Health Savings Account (HSA) funds are specifically designed to cover qualifying medical expenses as defined by the IRS. These expenses can include a variety of healthcare-related costs, such as doctor visits, prescription medications, dental care, and vision expenses, among others. The aim of an HSA is to help individuals save for medical expenses that are not covered by insurance, providing a tax-advantaged way to manage healthcare costs.

Importantly, the IRS has laid out specific criteria for what constitutes qualifying medical expenses, ensuring that the funds are used for necessary healthcare services rather than personal expenses that do not contribute to health. This restrictiveness offers a clear guideline for HSA users to follow, which helps prevent misuse of the funds for non-medical costs. Additionally, certain expenses like cosmetic surgeries, which generally do not qualify as necessary medical care, would not be eligible for payment through HSA funds.