Are Contacts and Vision Supplies HSA Eligible?

A Health Savings Account (HSA) is a specialized savings account designed to help individuals manage healthcare costs. It provides a tax-advantaged way to save and pay for a variety of qualified medical expenses. The purpose of an HSA is to empower individuals to save money for current and future healthcare needs, offering financial flexibility for health-related expenditures.

Understanding Health Savings Accounts

A Health Savings Account functions as a personal savings account specifically for healthcare expenses. To be eligible for an HSA, an individual must be enrolled in a High-Deductible Health Plan (HDHP) and generally have no other health coverage. For 2025, an HDHP must have a minimum deductible of $1,650 for self-only coverage or $3,300 for family coverage, with annual out-of-pocket maximums not exceeding $8,300 for self-only coverage or $16,600 for family coverage. Eligibility also requires that the individual is not enrolled in Medicare and cannot be claimed as a dependent on someone else’s tax return.

Contributions to an HSA can be made by the individual, an employer, or other persons on behalf of an eligible individual. These contributions offer a triple tax advantage: contributions are tax-deductible (or excluded from gross income if made by an employer), funds grow tax-free, and withdrawals are tax-free when used for qualified medical expenses. Unlike some other health savings plans, HSA funds roll over from year to year and remain with the account holder, even if they change employers or retire.

General Vision Care Eligibility

Many vision-related expenses are considered qualified medical expenses for HSA purposes. This includes routine eye exams, which are important for maintaining ocular health. Prescription eyeglasses and prescription sunglasses also qualify, as they correct vision, directly affecting a function of the body. The Internal Revenue Service (IRS) defines qualified medical expenses in Internal Revenue Code Section 213 and provides further guidance in Publication 502, “Medical and Dental Expenses.” This broad definition ensures that necessary vision care services and products aimed at improving or maintaining eye health and function are eligible.

Contact Lenses and Related Supplies

Prescription contact lenses are eligible for HSA reimbursement because they serve a medical purpose by correcting vision, directly affecting a function of the body. To be eligible, contact lenses must be prescribed by a licensed eye care professional as a medical necessity. Eligibility extends to related items necessary for their use and maintenance.

This includes contact lens solutions for cleaning, disinfecting, and storing lenses, as well as contact lens cases and other accessories essential for hygienic handling and storage. These items are integral to the safe and effective use of prescription contact lenses. Expenses must be primarily for medical care and not for general cosmetic enhancement.

Using Your HSA for Vision Expenses

Using your HSA for eligible vision expenses, such as contact lenses, involves straightforward steps. Many HSA providers offer a dedicated debit card for direct payment. Alternatively, individuals can pay out-of-pocket and reimburse themselves from their HSA, provided expenses were incurred after the HSA was established.

Maintaining meticulous records is important. Keep all receipts, invoices, and prescriptions related to your vision expenses. These documents serve as proof that withdrawals were for qualified medical expenses, necessary for tax purposes and in the event of an IRS audit. Taxpayers report HSA distributions on IRS Form 8889, using information from Form 1099-SA. If funds are withdrawn for non-qualified expenses before age 65, they are subject to income tax plus a 20% penalty, emphasizing the importance of proper documentation.