You probably already know that can use your health savings account (HSA) to pay for specific expenses. However, there are rules as to what you can and cannot use your HSA to pay for. This distinction is referred to as includible versus non-includible expenses.
· Includible expenses: The IRS defines qualified medical care expenses as amounts paid for the diagnosis, cure or treatment of a disease, and for treatments affecting any part or function of the body. The expenses must be primarily to alleviate a physical or mental defect or illness. You can use your HSA to pay for any of these types of expenses incurred by you, your spouse or your dependent(s) in the current plan year.
· Non-includible expenses: Typically, medical expenses for the cost of an item ordinarily used for personal, living or family purposes—unless it is used primarily to prevent or alleviate a physical or mental defect or illness—are typically non-includible. Additionally, qualified medical expenses from previous years or for future years are not includible for the current plan year.