Can I Buy Vitamins With My HSA Card?

A Health Savings Account (HSA) is a tax-advantaged savings vehicle designed to help individuals cover qualified medical expenses. It offers a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for eligible healthcare costs. Many wonder if common purchases like vitamins and supplements can be paid for with HSA funds.

Understanding HSA-Eligible Expenses

The Internal Revenue Service (IRS) establishes guidelines for what qualifies as a medical expense for HSA purposes. An expense must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Common eligible expenses include doctor visits, prescription medications, dental care, and vision services. These typically cover costs associated with maintaining or restoring health.

The IRS defines “medical care” as addressing existing medical conditions or preventing specific illnesses. Costs for hospital services, lab tests, and medically necessary equipment are permissible. The IRS outlines eligible expenses in publications like Publication 502. Account holders are responsible for ensuring expenses meet IRS criteria.

Vitamins and Supplements as Qualified Medical Expenses

Vitamins and dietary supplements purchased for general health or preventative care are not considered HSA-eligible expenses. The IRS states that expenses merely beneficial to general health do not qualify. This means a daily multivitamin for overall wellness cannot be paid for with HSA funds.

However, a specific exception applies when vitamins or supplements are recommended by a licensed medical practitioner for the diagnosis, cure, mitigation, treatment, or prevention of a specific medical condition or disease. In such cases, the purchase may become eligible. This often requires a “Letter of Medical Necessity” (LMN) from a healthcare provider. The LMN must clearly state the specific medical condition being treated, how the vitamin or supplement will alleviate or prevent that condition, and the duration for which it is needed. For example, Vitamin D supplements prescribed for a diagnosed Vitamin D deficiency or iron supplements for anemia would qualify with the necessary documentation, while a general dietary supplement would not.

Documentation and Record-Keeping for Vitamin Purchases

Maintaining records is important for all HSA-eligible purchases, especially for vitamins and supplements requiring medical justification. For these, retain the Letter of Medical Necessity (LMN) from your healthcare practitioner. This document should detail the medical condition, the prescribed item, and how it addresses the condition.

In addition to the LMN, it is crucial to keep all receipts showing the purchase of the vitamins or supplements. These records serve as proof of the expense and its eligibility in case of an IRS audit or a request from your HSA administrator. Organizing these documents, such as by storing digital copies, can simplify future tax filings and verification processes. Proper documentation ensures you can substantiate the medical necessity of the expense, which is essential for tax compliance.

Using Your HSA Card for Eligible Purchases

Using your HSA card functions like a debit card, allowing direct payment for eligible medical expenses. Many pharmacies and healthcare providers process HSA card payments seamlessly. If an expense is paid out-of-pocket, you can reimburse yourself from your HSA, provided you retain documentation to prove eligibility.

The account holder bears responsibility for determining if an expense is qualified. Using an HSA card for an ineligible expense carries significant consequences. If funds are withdrawn for a non-qualified expense, the amount is subject to ordinary income tax and a 20% penalty if the account holder is under age 65. If an error occurs, you may correct it by repaying the account before the tax filing deadline, avoiding taxes and penalty.