Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are powerful tools that can help you save money on healthcare expenses while providing tax advantages. Many people aren’t aware of the full range of products and services they can purchase using these accounts. Let’s explore how you can make the most of your HSA or FSA.

Understanding HSAs and FSAs

HSAs and FSAs both allow you to set aside pre-tax dollars for medical expenses, but they have some key differences:

• HSAs are only available with high-deductible health plans (HDHPs)
• HSA funds roll over year to year, while FSA funds generally must be used within the plan year
• HSAs have higher contribution limits ($4,150 for individuals, $8,300 for families in 2025)
• You can invest HSA funds, potentially growing your savings over time

Surprising Items You Can Purchase

Many people are unaware of the wide range of products eligible for HSA/FSA spending. Here are some unexpected items you might be able to buy:

1. Supplements: While most vitamins for general health aren’t eligible, certain supplements prescribed for specific medical conditions may qualify.
2. Biohacking tools: Devices like the Oura Ring, which tracks sleep and other health metrics, may be eligible.
3. Women’s health products: Menstrual care products, pregnancy tests, and breast pumps are typically covered.
4. Over-the-counter medications: Pain relievers, allergy medications, and cold/flu remedies are often eligible.
5. Sunscreen and first aid supplies
6. Eye care products: Glasses, contact lenses, and even non-prescription sunglasses (with a doctor’s recommendation)
7. Alternative therapies: Acupuncture, chiropractic care, and massage therapy (with a doctor’s note) may be eligible.

Popular Brands Available Through HSA/FSA

Many well-known health and wellness brands offer HSA/FSA-eligible products:

• Cymbiotika
• Dose
• Four Sigmatic
• Kion
• Lumebox – Red Light Therapy
• Oura and more…

How to Determine Eligibility

To find out if a specific product is eligible for HSA/FSA purchase:

1. Check with your HSA/FSA administrator or benefits provider
2. Look for an “FSA/HSA Eligible” label on product pages when shopping online
3. Use HSA/FSA-specific marketplaces like FSAstore.com or HSAstore.com
4. Consult IRS Publication 502 for a comprehensive list of eligible medical expenses

Tax Advantages

While it’s always best to consult a tax professional for personalized advice, here are some general tax benefits of HSAs and FSAs:

• Contributions are typically made with pre-tax dollars, reducing your taxable income
• HSA contributions are tax-deductible even if you don’t itemize deductions
• Withdrawals for qualified medical expenses are tax-free
• HSA funds can be invested, and any earnings grow tax-free

Tips for Maximizing Your HSA/FSA

1. Plan your contributions carefully, especially for FSAs which have “use it or lose it” rules
2. Keep all receipts for HSA/FSA purchases in case of an audit
3. Consider using your HSA as a long-term savings vehicle for future healthcare costs
4. For FSAs, check if your employer offers a grace period or allows a small rollover amount
5. Use online tools and apps to track your spending and check product eligibility

Making Purchases

When using your HSA/FSA funds:

1. Many retailers accept HSA/FSA debit cards directly
2. For online purchases, look for HSA/FSA payment options at checkout
3. If paying out-of-pocket, save receipts to submit for reimbursement later

Remember, while HSAs and FSAs offer great flexibility, it’s crucial to follow IRS guidelines and your plan’s specific rules. When in doubt, always check with your plan administrator or a tax professional.By understanding and fully utilizing your HSA or FSA, you can make your healthcare dollars go further while enjoying valuable tax benefits. Take the time to explore all the options available to you and make the most of these powerful healthcare spending tools.

Xo,

Clarita, Founder of Claridad

Referenced Products