A health savings account (HSA) can be a useful way to cover medical expenses with pre-tax dollars. And knowing which treatments count as qualified medical expenses will help you maximize your savings. One common question that account holders have is whether an HSA can be used for a massage. While HSAs cover many healthcare services, a massage can qualify depending on certain conditions.
A financial advisor can help you create a financial plan that includes HSAs and other tax-advantaged accounts.
Health Savings Account Basics
An HSA is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) pay for medical expenses. You can contribute money to your HSA pre-tax, which reduces your taxable income. The funds can be used to cover qualified medical expenses such as doctor's visits, prescription medications and certain treatments.
HSAs are also known for their triple tax advantage: contributions are tax-deductible, the funds grow tax-free and withdrawals are tax-free if used for eligible healthcare costs.
Eligibility for an HSA is tied to having an HDHP, which typically has higher deductibles but lower premiums. The 2024 contribution limit for an HSA is $4,150 for individuals and $8,300 for families. If you are over 55, you can also make an additional catch-up contribution of $1,000.
When weighing the pros and cons of an HSA, one of the key benefits is that the funds never expire, so you can continue saving for medical expenses even into retirement.
HSAs offer flexibility, as the funds roll over year to year, allowing you to build up savings for future healthcare needs. However, you must understand what counts as a qualified medical expense to avoid penalties or taxes when using your HSA.
Can You Use Your HSA for a Massage?
Whether you can use your HSA for a massage depends on why the massage is being performed.
Generally, HSAs cover treatments that are considered medically necessary, and massages are no exception. If a doctor prescribes massage therapy to treat a specific medical condition–such as chronic pain, injury recovery or other ailments–then the cost of the massage may be a qualified medical expense. In these cases, you will need documentation from your healthcare provider to show that the massage is part of a prescribed treatment plan.
But, if the massage is for relaxation or general well-being, it is not considered a qualified medical expense, and you cannot use HSA funds to cover it. Massages for stress relief or spa treatments, even if they improve your overall health, do not meet the criteria for HSA reimbursement. This is why you should keep detailed records for any massage therapy you claim as an HSA expense to demonstrate that it is supported by a medical diagnosis and prescription.
If you are uncertain whether your specific situation qualifies, it is a good idea to consult with your HSA provider or review IRS guidelines on qualified medical expenses.
HSA Qualified Expenses
HSAs can offer broad coverage for a variety of medical expenses, provided that they are deemed necessary for the diagnosis, treatment or prevention of disease. Understanding what counts as a qualified medical expense can help you maximize your HSA benefits and avoid penalties for ineligible expenses. Here are five examples of qualified HSA expenses:
- Doctor visits and specialist care: You can use HSA funds to pay for consultations, check-ups and treatments provided by licensed medical professionals, such as physicians, chiropractors and physical therapists.
- Prescription medications: Any drugs prescribed by a healthcare provider to treat a specific condition are covered by your HSA. Over-the-counter medications may also qualify if prescribed by a doctor.
- Surgery and medical procedures: HSA funds can be used to cover costs associated with surgeries, including both elective and emergency procedures, as long as they are medically necessary.
- Mental health services: Therapy sessions, psychological counseling and other mental health treatments prescribed by a healthcare professional are eligible expenses.
- Medical equipment and supplies: Items such as blood pressure monitors, crutches and hearing aids are considered qualified expenses and can be paid with HSA funds.
While HSAs cover a wide range of healthcare needs, expenses such as cosmetic procedures, gym memberships or non-prescribed vitamins and supplements are generally not eligible.
Bottom Line
HSAs provide a tax-advantaged way to pay for medical expenses, but understanding which services qualify is key to using your account effectively. Massages may be covered if they are prescribed by a doctor to treat a medical condition, but massages for relaxation or general wellness do not qualify. If you are unsure whether a service is eligible, you may want to consult your HSA provider and keep thorough records of any treatments prescribed by a healthcare professional.
Health Savings Tips
- A financial advisor could help you create a plan to save for retirement and pay for health expenses. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.
- While an HSA isn't designed specifically for retirement savings, you could use this account to supplement your nest egg. Here's what you need to know.
Photo credit: ©iStock.com/urbazon, ©iStock.com/Drs Producoes, ©iStock.com/LSOphoto
The post Can You Use Your HSA for a Massage? appeared first on SmartReads by SmartAsset.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
