If one of your 2022 resolutions (more on those next week) is to focus on your physical health, your financially healthy choices may help. Health Savings Accounts (available to those participating in an H.S.A Qualified High Deductible health insurance plan) can be used today, in 5 months, or during retirement to pay for medical expenses.
While some people put money away in H.S.A.’s as an extra tax-free retirement account to use for older age medical costs, you can always use the pre-tax contributions for more pressing medical needs. Here are a few examples of costs that can be covered with your H.S.A. money.
- A fitness tracker. You’ll need a doctor’s letter saying why this device is medically necessary. Also, Apple Watches don’t count.
- Prescription smoking cessation programs, but not over the counter nicotine gum/patches.
- Breast feeding pumps and supplies.
- Guide dogs and other service animals. Although, I’m guessing that emotional therapy peacock you are trying to get onto that Southwest flight doesn’t count.
- Sunscreen and acne care products, including cleansers, gels, and light therapy gadgets.
And many more! Consider money added to your H.S.A. kind of like a 15% – 20% (depending on your real tax rate) coupon off unreimbursed medical expenses. Yes, it would be nice to leave at least some of it growing for retirement uses, but it could also help you live your healthiest life today.