What Feminine Products Are HSA Eligible?
Maximize your HSA savings for personal care essentials. Understand which common items are now eligible for tax-advantaged purchases.
A Health Savings Account (HSA) offers a tax-advantaged way for individuals enrolled in high-deductible health plans to save and pay for qualified medical expenses. These accounts provide a triple tax benefit: contributions may be tax-deductible, earnings grow tax-free, and withdrawals for eligible expenses are also tax-free. The scope of what constitutes a “qualified medical expense” has expanded over time, providing greater flexibility for account holders.
Understanding Eligible Feminine Care Products
The Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 reclassified menstrual care products as qualified medical expenses, effective January 1, 2020. This legislative update recognized these items for managing menstrual health, making them eligible for HSA or Flexible Spending Account (FSA) use, unlike before.
This reclassification means a broad range of products designed for menstruation are now HSA eligible. These commonly include tampons, sanitary pads, panty liners, menstrual cups, and period underwear. Products similar in function, such as menstrual sponges, also qualify. Their eligibility covers items used to absorb or manage menstrual flow.
How to Use Your HSA for Purchases
Utilizing your HSA funds for eligible feminine care products involves two primary methods. Many HSA providers issue a debit card linked directly to your account, usable at the point of sale. This offers immediate access to your tax-advantaged funds for qualified purchases. When using the debit card, the transaction amount is instantly deducted from your HSA balance.
Alternatively, pay for eligible expenses out-of-pocket and seek reimbursement from your HSA. This allows HSA funds to remain invested and potentially grow tax-free longer. Submit reimbursement requests to your HSA administrator, often via an online portal, with purchase documentation. Detailed records, like itemized receipts or statements, are essential for all HSA expenditures as proof of eligibility for IRS audits. There is no time limit for reimbursement, provided the expense was incurred after your HSA was established.
Important Considerations and Non-Eligible Items
While many feminine care products are now HSA eligible, distinguish them from items that do not qualify. Products intended for cosmetic purposes, general personal hygiene unrelated to a medical condition, or convenience are not covered. For instance, scented washes, deodorants, or certain wipes not prescribed for a medical condition are not eligible. The primary criterion for eligibility is the product’s direct use for medical care, mitigation, treatment, or prevention of disease.
Always confirm eligibility with your specific HSA plan administrator, as interpretations can vary among providers. The Internal Revenue Service (IRS) Publication 502 provides guidance on what constitutes a qualified medical expense. Maintaining records for all HSA transactions is important to ensure compliance and avoid potential penalties.