Are Feminine Products HSA Eligible?

A Health Savings Account (HSA) provides a tax-advantaged method for individuals to save and pay for qualified medical expenses. This type of account is typically paired with a high-deductible health plan (HDHP), allowing participants to manage healthcare costs with pre-tax or tax-deductible contributions. Funds within an HSA can grow tax-free through investments, and withdrawals for eligible medical expenses are also tax-free. This triple tax advantage makes HSAs a valuable tool for both immediate healthcare needs and long-term savings.

Eligible Feminine Hygiene Products

Feminine hygiene products are eligible for purchase using Health Savings Account funds. This eligibility was established due to a legislative change under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. Before this act, these products were generally not considered qualified medical expenses. The CARES Act amended IRS Code Section 213 to include menstrual care products as eligible medical expenses, recognizing their necessity for managing menstrual health.

A wide range of products now qualify, encompassing items essential for menstrual care. These include:

• Tampons
• Pads
• Panty liners
• Menstrual cups
• Menstrual discs
• Sponges

Additionally, specialized products such as reusable cloth pads and absorbent period underwear are also considered eligible. This broad inclusion ensures individuals can use their HSA funds for a comprehensive array of menstrual hygiene needs without requiring a prescription.

Using HSA Funds for Purchases

Accessing your HSA funds for eligible feminine hygiene products is straightforward. Many HSA providers issue a dedicated debit card for direct payment at the point of sale. This method provides immediate access to funds for eligible purchases in-store or online. When using an HSA debit card, ensure the merchant accepts it; sometimes selecting “credit” at checkout is required even if it’s a debit transaction.

Alternatively, individuals can pay for eligible expenses out-of-pocket and then seek reimbursement from their HSA. This process typically involves submitting a claim to your HSA administrator, often through an online portal or mobile application. Many HSA providers allow transfers to a linked personal bank account for reimbursement. There is no time limit for seeking reimbursement for qualified expenses, provided the expense was incurred after the HSA was established.

Record Keeping for HSA Purchases

Maintaining accurate records for all HSA transactions is a responsibility for account holders. This documentation is essential for tax purposes and in the event of an Internal Revenue Service (IRS) audit. The IRS may review HSA distributions to confirm they were used for qualified medical expenses.

Key documents to retain include itemized receipts showing the date of purchase, item description, and amount paid. While HSA administrators do not typically verify every purchase, individuals are solely responsible for proving the eligibility of their expenses. It is advisable to keep these records for at least seven years, aligning with the period a tax return remains open for audit.