Can I Use My HSA for Veneers?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. These accounts are generally available to individuals enrolled in a high-deductible health plan (HDHP), allowing funds to grow tax-free and be withdrawn tax-free for eligible healthcare costs.

Understanding HSA Eligible Expenses

The Internal Revenue Service (IRS) defines what qualifies as “medical care” for HSA purposes under Internal Revenue Code Section 213(d). Eligible expenses are those incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. Funds can be used for qualified medical expenses for the account holder, their spouse, and their dependents, even if they are not covered by the high-deductible health plan.

Veneers and Cosmetic Dental Work

Dental veneers are considered a cosmetic dental procedure and are generally not HSA-eligible. The IRS stipulates that expenses for cosmetic surgery or other similar procedures are not deductible unless necessary to improve a deformity arising from a congenital abnormality, a personal injury, or a disfiguring disease.

However, if veneers are part of a treatment plan to address a specific medical condition, such as repairing teeth damaged by injury or disease, they may be HSA-eligible. This distinction hinges on the primary purpose of the procedure, which must be medical rather than aesthetic. It is important to obtain a detailed statement from the dental professional clarifying the medical necessity in such cases.

Other Eligible Dental Procedures

Many common dental procedures qualify as medical expenses and can be paid for with HSA funds. These include routine preventative care such as dental cleanings and fluoride treatments. Procedures addressing existing dental issues, like fillings for cavities, extractions, and root canals, are also eligible.

More complex restorative work, such as crowns, bridges, and dentures, also qualifies as an HSA-eligible expense. Orthodontic treatments, including braces or aligners, are eligible if they address a medical necessity, such as correcting a malocclusion that impacts chewing or speech. Maintaining thorough documentation from your dentist, detailing the medical purpose of any procedure, is advisable.

Using Your HSA Funds

Using your HSA funds for qualified medical expenses can be done in several ways. Many HSA providers issue a debit card linked directly to your account, which can be used at the point of service. You can also pay for an eligible expense out-of-pocket and then reimburse yourself from your HSA. This flexibility allows you to accumulate funds and withdraw them when needed, even years later.

Maintain meticulous records of all medical expenses and HSA distributions for tax purposes. This includes receipts, invoices, and Explanation of Benefits (EOB) statements from your insurance provider. These documents serve as proof that your distributions were for qualified medical expenses, crucial if your tax return is audited.

Consequences of Misusing HSA Funds

Using HSA funds for non-qualified expenses can lead to financial repercussions. Any distribution from an HSA that is not for a qualified medical expense is subject to income tax.

Beyond income tax, there is an additional penalty tax of 20% on non-qualified distributions if you are under age 65. Once you reach age 65, distributions for non-qualified expenses are only subject to income tax, without the additional penalty.

Citations

Cosmetic surgery – IRS.gov. [Online]. Available: https://www.irs.gov/publications/p502#en_US_2023_publink1000178972. [Accessed: 29-Aug-2025].
About Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans – IRS.gov. [Online]. Available: https://www.irs.gov/forms-pubs/about-publication-969. [Accessed: 29-Aug-2025].