Can You Use an HSA for Protein Powder?

A Health Savings Account (HSA) offers a tax-advantaged way to save for future healthcare costs. Individuals frequently inquire about the eligibility of various expenses, particularly those not traditionally considered medical, such as protein powder. Understanding HSA guidelines helps distinguish between general wellness support and expenses directly addressing a medical condition.

General HSA Expense Eligibility

A Health Savings Account is a tax-exempt trust established to pay or reimburse certain medical expenses. These accounts are available to individuals enrolled in a high-deductible health plan (HDHP) and offer tax benefits, including tax-deductible contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses. The Internal Revenue Service (IRS) defines qualified medical expenses as costs incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. This definition specifically excludes expenses that are merely beneficial to general health, such as vitamins or a vacation.

Protein Powder: Generally Not a Qualified Expense

Protein powder typically does not qualify as a medical expense for HSA reimbursement. Its primary use is for general fitness, weight management, or athletic performance, which are considered general health or wellness purposes. Therefore, if protein powder is purchased simply to supplement a diet for general nutrition or muscle gain, it is not an eligible HSA expense. Using HSA funds for such purposes would be considered a non-qualified distribution and could be subject to income tax and a penalty if the account holder is under age 65.

Establishing Medical Necessity for Coverage

Protein powder can become an eligible HSA expense only when prescribed by a licensed healthcare provider to treat a specific medical condition. This requires a formal document known as a Letter of Medical Necessity (LOMN). The LOMN serves as a written statement from a doctor, nurse practitioner, or other qualified professional, detailing why the protein powder is essential for your medical care. It must explicitly state a diagnosis of a specific medical condition that necessitates the protein powder.

The letter must explain how the protein powder directly contributes to the treatment or mitigation of that particular condition, rather than simply supporting general health. Examples include severe malnutrition, post-surgical recovery requiring high protein intake, or certain chronic conditions. It is important to obtain this LOMN before purchasing the protein powder, as it substantiates the medical necessity from the outset. The LOMN should also include the provider’s name, credentials, signature, date, and specific dosage and treatment instructions.

Required Documentation for HSA Compliance

Maintaining proper documentation is important for HSA compliance, especially when an expense like protein powder requires a Letter of Medical Necessity. While HSA administrators do not typically require upfront substantiation for every transaction, the responsibility for proving expense eligibility rests with the account holder in case of an IRS audit. Therefore, it is important to retain the original Letter of Medical Necessity for any protein powder purchases. This document provides the necessary justification that the expense was for a qualified medical purpose rather than general health.

In addition to the LOMN, detailed, itemized receipts for all protein powder purchases must be kept. These receipts should clearly show the date of purchase, the merchant, the specific item purchased, and the amount paid. Account holders should keep these records, along with their tax returns, for a minimum of seven years to prepare for an IRS audit. Failure to provide sufficient documentation for an expense can result in the distribution being considered non-qualified, leading to income tax and a 20% penalty if the account holder is under age 65.