Can I Use My HSA to Buy Sunglasses?
Navigate IRS rules to determine if your sunglasses purchase qualifies as an HSA expense. Learn about medical necessity and required documentation.
A Health Savings Account (HSA) provides a tax-advantaged savings and spending mechanism for healthcare expenses. Paired with high-deductible health plans, these accounts offer tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. HSAs empower individuals to manage their healthcare costs with pre-tax dollars.
HSA Eligibility for Vision Care
The Internal Revenue Service (IRS) defines a “qualified medical expense” as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any structure or function of the body. These expenses must primarily serve a medical purpose, rather than being for general health or cosmetic benefits. Vision care expenses, including eye examinations, prescription eyeglasses, and contact lenses, commonly fall under this definition and are generally eligible for HSA reimbursement.
Qualifying Sunglasses and Documentation
Sunglasses can be considered a qualified medical expense when they serve a medical purpose. Prescription sunglasses, which correct vision while providing protection from ultraviolet (UV) light, are generally eligible for HSA reimbursement. This eligibility stems from their dual function of vision correction and eye protection, aligning with IRS criteria for medical necessity. Non-prescription sunglasses are not eligible unless medically necessary to treat a specific condition, such as severe light sensitivity or post-operative care.
For non-prescription sunglasses to qualify, a medical professional must recommend them to address a diagnosed condition. This recommendation often takes the form of a doctor’s prescription or a Letter of Medical Necessity (LOMN) from an ophthalmologist or optometrist. The documentation should clearly state the medical reason for the sunglasses, confirming they are not for general health or cosmetic purposes. For prescription sunglasses, a valid prescription from an eye care professional is usually sufficient to establish eligibility.
Purchasing and Record Keeping
When using HSA funds for qualifying sunglasses, you can typically use an HSA debit card directly at the point of sale. Alternatively, you may pay out-of-pocket and then reimburse yourself from your HSA. Retain meticulous records for all HSA expenditures.
These records should include detailed receipts, the doctor’s prescription for corrective lenses, or the Letter of Medical Necessity for non-prescription sunglasses. Maintaining these documents is essential because you, as the account holder, are responsible for substantiating that all distributions were for qualified medical expenses in the event of an IRS audit. Without proper documentation, non-qualified distributions may be subject to income tax and an additional 20% penalty. It is advisable to keep these records for at least three years after filing your tax return.