Can You Use an HSA for Wisdom Teeth Removal?

Health Savings Accounts Explained

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. To be eligible for an HSA, an individual must be enrolled in a high-deductible health plan (HDHP). This combination allows for pre-tax contributions, tax-free growth of funds, and tax-free withdrawals for eligible healthcare costs.

The Internal Revenue Service (IRS) defines “qualified medical expense” through guidelines such as IRS Publication 502. Generally, these are costs paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body.

Qualifying Dental Expenses

Dental procedures are frequently a significant healthcare cost, and many are considered qualified medical expenses for HSA purposes. Wisdom teeth removal specifically falls into this category, as it is typically performed to address issues such as impaction, pain, infection, or to prevent future dental complications.

Eligible dental expenses extend to other medically necessary treatments like fillings, crowns, diagnostic services such as X-rays, and even orthodontia in many cases. Purely cosmetic dental procedures, such as teeth whitening or veneers solely for aesthetic enhancement, are generally not considered qualified medical expenses unless they are necessary to correct a congenital defect or accident.

Using Your HSA and Documentation

Using your HSA for wisdom teeth removal can be done in a few practical ways. Many HSA providers issue a debit card linked directly to the account, allowing for direct payment at the dental office at the time of service. Alternatively, individuals can pay for the procedure out-of-pocket and then reimburse themselves from their HSA at a later date, even years after the expense was incurred, provided they maintain proper records.

Maintaining meticulous documentation for all HSA expenditures is important for compliance. This includes itemized receipts from the dental provider, which should detail the procedure, date of service, and amount paid. It is also advisable to keep Explanation of Benefits (EOB) statements from your health insurer, as these document how your insurance covered the expense. In the event of an IRS audit, these records demonstrate that distributions were for qualified medical expenses and were not reimbursed from other sources or taken as an itemized deduction.