Can You Buy Baby Wipes With an HSA Account?

Health Savings Accounts (HSAs) offer a tax-advantaged way for individuals with high-deductible health plans to save for qualified medical expenses. Contributions are pre-tax, grow tax-free, and withdrawals for eligible expenses are also tax-free. The IRS establishes rules for qualified HSA expenses.

Eligibility of Baby Wipes

Baby wipes are not considered eligible expenses for HSAs. The IRS defines a “medical expense” as costs primarily for diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body structure or function. Baby wipes are general hygiene products, like soap or shampoo, intended for everyday cleaning, not for treating a specific medical condition. Their purchase therefore does not meet IRS criteria for a qualified medical expense.

For an item to be HSA-eligible, it must alleviate or prevent a medical condition, not just promote general health. While baby wipes contribute to cleanliness, they do not inherently treat or prevent disease like medication or medical devices. A rare exception is a Letter of Medical Necessity (LMN) from a healthcare provider for a specific medical condition, such as severe dermatitis or a chronic skin rash, requiring a particular wipe for treatment. Such instances are uncommon and require explicit documentation outlining the condition and item’s necessity.

Common Eligible Baby Items

While general baby wipes are excluded, many other baby-related items are eligible medical expenses for HSA reimbursement. These items address health, treatment, or prevention needs under IRS guidelines. Breast pumps and their supplies, like storage bags and nursing pads, are eligible as they support lactation and infant feeding. Prenatal vitamins also qualify, essential for the health of both the expectant parent and developing baby, preventing deficiencies and supporting proper development.

Infant pain relievers, teething relief products, and anti-rash ointments or creams are HSA-eligible as they treat specific symptoms or conditions like pain or skin irritation. Baby sunscreen is also eligible, preventing skin damage and reducing skin cancer risk, aligning with IRS disease prevention emphasis. Health-tracking baby monitors that measure vital signs like breathing or heart rate are eligible due to their diagnostic and preventative functions, unlike basic audio or video-only monitors.

Keeping Records for HSA Purchases

Maintaining thorough records for all HSA purchases is a responsibility for account holders. The IRS requires documentation proving HSA distributions were used exclusively for qualified medical expenses. This documentation is necessary for potential IRS audits and to demonstrate expense eligibility.

Key documents include detailed receipts showing the item, date, and amount. For expenses requiring additional justification, like those with a Letter of Medical Necessity, keep a copy of the doctor’s note or prescription with the receipt. Explanation of Benefits (EOB) statements from your health insurance provider are helpful to confirm an expense was not reimbursed elsewhere. Records should be kept for at least three years after the tax return was filed, or longer if the HSA account remains active.