What Baby Items Can You Buy With an HSA?

A Health Savings Account (HSA) offers a valuable way to save and pay for qualified medical expenses with tax advantages. These accounts allow pre-tax contributions, tax-free growth, and tax-free withdrawals for eligible expenses. Understanding which baby-related costs qualify for HSA use can help new and expecting parents optimize their healthcare spending.

General Rules for Dependent Eligibility

The Internal Revenue Service (IRS) defines a “medical expense” for HSA purposes as amounts paid primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses must be for medical care, not merely general health.

These rules extend to eligible dependents, including a baby. An individual can use HSA funds for their spouse and any dependents claimed on their tax return, including children under age 26.

For an expense to be qualified, it must be medically necessary. This means the item or service must directly address a health condition, treat an illness, or prevent disease. Expenses for general health or personal use are not eligible.

Maintain records, such as receipts and, if applicable, a Letter of Medical Necessity (LMN) from a healthcare provider. These documents substantiate medical necessity in case of an audit.

Specific Baby Items Qualifying for HSA Use

Many baby-related items and services are HSA-eligible if they meet the IRS definition of medical care. These expenses are directly related to the health, treatment, or prevention of illness for the infant or recovering mother.

Pediatrician visits and immunizations are common eligible expenses. Prescribed medications for the baby, such as those for an illness or specific condition, also qualify. Over-the-counter medications are generally eligible without a prescription.

Medical devices and supplies used for monitoring or treating health conditions are covered. Examples include thermometers for checking fever, nasal aspirators for clearing congestion, and nebulizers for respiratory issues.

Breast pumps and related supplies are eligible due to their role in infant nourishment and maternal health. This includes the breast pump itself, whether purchased or rented, as well as accessories like storage bags, nursing pads, and nipple creams.

Lactation consultant fees are also HSA-eligible. These professionals provide support and guidance on breastfeeding techniques and address challenges.

Certain specialized formulas may qualify if medically necessary and prescribed by a doctor. This applies when a baby has a specific medical condition, such as an allergy, that requires a particular type of formula. In such cases, only the excess cost of the specialized formula over regular formula might be eligible, and a Letter of Medical Necessity is often required.

Prenatal and postnatal care for the mother are also HSA-eligible if directly related to the baby’s health or the mother’s recovery from childbirth. This can include services like medically necessary massages, postpartum belly wraps, and peri bottles, which support the mother’s physical recovery.

Items Not Qualifying for HSA Use

While many baby-related expenses are HSA-eligible, many common items are not. These exclusions are based on the principle that HSAs cover medical care, not general health, hygiene, or personal expenses.

Diapers and wipes are typically not eligible for HSA reimbursement. The IRS considers them “general health” items, necessary for hygiene. However, if diapers are required to treat an underlying medical condition like incontinence in an older child, they might qualify with a Letter of Medical Necessity.

Regular baby formula is generally not HSA-eligible, as it is considered food for nutritional needs rather than medical treatment. Only specialized formulas prescribed for a medical condition may be eligible under specific circumstances.

Common baby items such as clothing, car seats, cribs, strollers, and toys are not eligible. These are general personal expenses or safety items that do not directly treat or prevent a medical condition.

Childcare expenses are generally not HSA-eligible unless the care is specifically for medical purposes. General comfort items, baby food, and most lotions and soaps not used to treat a specific skin condition are typically excluded.