Can You Buy Feminine Products With an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account designed for individuals covered by high-deductible health plans. Its primary purpose is to allow account holders to save and pay for qualified medical expenses with pre-tax dollars, offering a valuable financial tool for managing healthcare costs. This article clarifies whether feminine hygiene products qualify as eligible HSA expenses.

Eligibility of Feminine Hygiene Products

Feminine hygiene products are eligible for purchase with a Health Savings Account. This eligibility was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020. Before this legislation, these products were not considered qualified medical expenses, but the Act recognized them as essential for health and well-being.

The range of eligible products is comprehensive, including items such as tampons, sanitary pads, panty liners, menstrual cups, menstrual sponges, and period underwear. These are defined as products used for menstruation to absorb or manage menstrual flow and support personal hygiene.

It is important to distinguish eligible menstrual care products from general cosmetic items or non-medical toiletries. Products such as hygiene wipes, deodorants, or washes are not covered unless prescribed by a medical professional for a specific medical condition. Items marketed for cosmetic use, rather than menstrual health, do not qualify for HSA reimbursement.

Using Your HSA for Purchases

Using your HSA for eligible feminine hygiene products offers convenience and tax advantages. You can pay directly at the point of sale using an HSA-linked debit card. This method is accepted at various retailers, including pharmacies, grocery stores, and online merchants.

Alternatively, you can purchase products out-of-pocket and then seek reimbursement from your HSA. Pay with a personal debit or credit card, then submit a request to your HSA administrator with documentation. Many HSA providers allow online transfers to your bank account or offer a check option.

Maintaining records is important for using your HSA, especially for reimbursement or in case of an IRS audit. Keep all receipts for purchases made with HSA funds, whether paid directly or reimbursed. Without proper documentation, any distribution not proven as a qualified medical expense may be subject to income tax and a 20% penalty. Retain these records for at least seven years to ensure tax compliance.