Are Multivitamins an HSA Eligible Expense?
Are multivitamins HSA eligible? Understand IRS criteria, medical necessity requirements, and essential documentation to properly qualify your health-related expenses.
Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. A common question arises regarding the eligibility of everyday items, such as multivitamins. Understanding the specific Internal Revenue Service (IRS) guidelines is essential to ensure proper use of these funds and avoid potential penalties. This article clarifies when multivitamins can be paid for with an HSA.
What Qualifies as an HSA Eligible Medical Expense
The Internal Revenue Service (IRS) defines what constitutes an HSA eligible medical expense. Generally, these are costs paid primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. Expenses that are merely beneficial to general health, such as those for cosmetic purposes or overall wellness without a specific medical need, are typically excluded.
Common examples of eligible expenses include doctor visits, prescription medications, hospital stays, and dental or vision care. Over-the-counter medicines and certain supplies also qualify, especially after recent changes removed the prescription requirement for many of these items. The underlying principle is that the expense must address a physical or mental defect or illness, rather than simply promoting general well-being.
Multivitamins and HSA Eligibility
Generally, multivitamins are considered products for “general health” and are not eligible for HSA reimbursement. This means that purchasing a daily multivitamin for overall wellness or to fill perceived nutritional gaps in one’s diet typically cannot be done with HSA funds. The IRS views these as expenses that are merely beneficial rather than for the treatment or prevention of a specific medical condition.
However, multivitamins become HSA eligible if recommended by a medical professional to treat a specific medical condition or diagnosed deficiency. For instance, if a doctor diagnoses an iron deficiency and recommends an iron supplement, or identifies a vitamin D deficiency requiring a specific vitamin D supplement, these would qualify. Prenatal vitamins are often an exception as they are considered preventative care for potential pregnancy and fetal development.
Documentation and Record Keeping
When a multivitamin is purchased using HSA funds under the exception of medical necessity, thorough documentation is essential. The primary document required is a Letter of Medical Necessity (LMN) from a licensed healthcare provider. This letter must clearly state the diagnosed medical condition and explain why the multivitamin is necessary to treat, cure, or prevent that specific condition. It should also indicate the recommended dosage and the duration of treatment.
Individuals should retain meticulous records of all HSA expenditures, including the LMN, itemized receipts for the multivitamin, and any related medical records. While HSA administrators typically do not require submission of these documents for every transaction, the account holder is responsible for proving eligibility in the event of an IRS audit. Keeping these records for at least seven years is a prudent practice, as the IRS can audit tax returns within that timeframe. Failing to provide sufficient proof of eligibility can result in the expense being disallowed, leading to taxes and a potential 20% penalty on the amount.