Can I Use My HSA Account for Condoms?
Navigate HSA rules to understand what medical expenses qualify, including clarity on common items like condoms and essential record-keeping.
Health Savings Accounts (HSAs) offer a tax-advantaged way for individuals to save and pay for healthcare expenses. These accounts help those with high-deductible health plans manage medical costs. Contributions to an HSA are tax-deductible, funds grow tax-free, and qualified withdrawals are also tax-free, providing financial benefits for healthcare planning.
Understanding Qualified Medical Expenses
To use an HSA, expenses must be “qualified medical expenses” as defined by the Internal Revenue Service (IRS). These are primarily costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. IRS Publication 502, “Medical and Dental Expenses,” provides comprehensive guidance on what qualifies. This includes common expenses like doctor visits, prescription medications, hospital stays, and certain dental or vision care.
Expenses must be primarily for the prevention or alleviation of a physical or mental defect or illness, not merely for general health or cosmetic purposes. For example, a doctor-prescribed therapy for a specific condition would be.
Condoms and HSA Eligibility
Yes, condoms are considered a qualified medical expense for Health Savings Accounts. The IRS clarifies that amounts paid for condoms are treated as expenses for medical care under Internal Revenue Code Section 213. This eligibility stems from their role in preventing sexually transmitted infections (STIs) and pregnancy, both of which are considered medical conditions or their prevention.
This includes both over-the-counter and prescribed varieties of condoms. The IRS has expanded preventive care options, specifically including condoms as eligible medical expenses. This allows individuals to manage their sexual health and reproductive choices using pre-tax dollars from their HSA.
Keeping Records for HSA Purchases
Maintaining accurate records for all HSA-funded expenses, including condom purchases, is important for compliance. While you can use your HSA funds directly, the IRS may request documentation to verify that withdrawals were for qualified medical expenses. Retain itemized receipts or statements showing the date of purchase, the item or service purchased, and the cost.
These records are important in case of an IRS audit, which can occur several years after a transaction. Keeping documentation, such as receipts or Explanation of Benefits (EOB) statements from your insurer, helps substantiate that your HSA withdrawals were legitimate.