Can You Use HSA for Period Underwear?
Demystify HSA eligibility for period underwear and other essential personal health purchases. Get practical guidance.
A Health Savings Account (HSA) offers a tax-advantaged way to save for and pay for qualified medical expenses. Individuals enrolled in a high-deductible health plan (HDHP) can contribute pre-tax funds to an HSA, which can then be used for various healthcare-related costs. This article clarifies whether period underwear qualifies as an eligible expense for HSA funds.
Eligibility for Period Underwear
Period underwear is an eligible expense for a Health Savings Account. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, reclassified menstrual care products as qualified medical expenses, effective January 1, 2020. This legislative change allows individuals to use their HSA funds for these items without requiring a prescription.
The Internal Revenue Service (IRS) defines menstrual care products to include tampons, pads, liners, cups, sponges, or similar products used for menstruation. Period underwear falls under this “similar products” category because its primary purpose is to manage menstrual flow.
Using Your HSA for Purchases
There are two methods for using HSA funds to cover eligible expenses. Many HSA providers issue a debit card linked directly to the account, which can be used at the point of sale, similar to a regular debit card.
Alternatively, individuals can pay for eligible expenses out-of-pocket using personal funds and then seek reimbursement from their HSA. This process often involves submitting a claim to the HSA administrator, which may require documentation such as itemized receipts. It is important to retain all receipts and records for HSA purchases for tax purposes, as the IRS may request proof of eligibility in the event of an audit. There is no time limit for reimbursing yourself for past qualified medical expenses, provided the expense was incurred after your HSA was established.
Other Eligible Menstrual Products
Beyond period underwear, other common menstrual care products are eligible expenses for HSA funds under the CARES Act provisions. These include traditional disposable items such as tampons, sanitary pads, and panty liners. Reusable options like menstrual cups and menstrual discs are also covered.
These products are recognized for their role in managing menstruation, which is deemed a qualified medical expense. This expanded eligibility allows individuals to choose from a wider range of menstrual products that best suit their needs while utilizing their tax-advantaged HSA funds.