- Routine health care: Office visits, X-rays, lab work
- Hospital expenses: Room and board, surgery
- Medications: Prescription and over-the-counter (OTC) drugs, like aspirin (however, beginning January 1, 2011, OTC medications can no longer be paid from HSAs unless prescribed by a physician)
- Dental care: Cleanings, fillings, crowns
- Vision care: Eye exams, glasses, contacts
- Copays and coinsurance: The portion of health care bills paid by you
Keep in mind, if you use your HSA funds for nonqualified medical expenses prior to age 65, you will have to pay income tax and a 20% penalty for the HSA distribution. After age 65, you can use the money in an HSA for any non-health care expenses without penalty, but it will be taxed as income.
A full list of qualified expenses is available at IRS.gov. The list is subject to change and is intended only as a general guideline for covered expenses. You should consult a tax, legal or financial advisor to discuss your personal situation.