 TITLE: What Can You Purchase With HSA Funds? CONTENT: When Your HSA Is Not the Best Choice\n------------------------------------\nOf course, the list of things you can't use your HSA to pay for is much longer than the list of eligible expenses. Notably, you can't use your HSA account to pay for insurance premiums, cosmetic procedures or veterinary expenses (unless they're for your HSA-eligible guide dog).\nThere are a few additional reasons you might not want to use your HSA to pay for qualified expenses. If you're counting on the money in your HSA to cover high deductibles in the event of a major illness, you may not want to deplete your account. Make sure you're maintaining the safety net you need before you start spending.\nUsing your HSA to pay, even for eligible expenses, can be complicated. The card itself may have restrictions on where you can spend—and on what. For example, your card might not work if you try to use it at a supermarket or convenience store. If you can't run a transaction using your HSA card, you will have to submit your expenses for reimbursement after the fact. It's not the end of the world, but it is an inconvenience that might not be worth the trouble for a few small items.\nUsing your HSA to pay can save you money by using pre-tax dollars deducted from your paycheck and\/or accessing money your employer has provided for just these purposes. But, because your savings are tax-related, they're subject to IRS scrutiny. If you're audited and your expenses turn out to be non-qualified, you could be liable for income taxes and a 20% penalty on the amount you spent. END