Can you use a HSA for dental work?

Learn about the latest updates on using a Health Savings Account (HSA) for dental work in 2024.

In recent years, health savings accounts (HSAs) have become an increasingly popular option for individuals to save for medical expenses. With their tax advantages and flexibility, many people wonder if they can also use their HSA funds for dental work. In this article, we will explore the rules and regulations surrounding the use of HSAs for dental procedures.

Can you use HSA for dental work?

Yes, you can use your Health Savings Account (HSA) for dental work. Dental expenses are considered eligible medical expenses under the IRS guidelines, so you can use your HSA funds to pay for a wide range of dental procedures, including preventive, restorative, and cosmetic treatments.

When it comes to preventive dental care, your HSA can cover routine check-ups and cleanings. These regular visits to the dentist are essential for maintaining good oral health and preventing more serious dental issues down the line. By using your HSA funds for these preventive measures, you are investing in your long-term dental well-being.

In addition to preventive care, your HSA can also be used for restorative dental procedures. This includes treatments such as fillings, root canals, and crowns. These procedures are necessary to repair and restore damaged teeth, ensuring that your smile remains healthy and functional.

Furthermore, orthodontic treatments can also be covered by your HSA. If you or your child needs braces or other orthodontic appliances to correct misaligned teeth or jaw issues, you can use your HSA funds to help cover the cost. Orthodontic treatments can greatly improve the appearance and functionality of your teeth, leading to a more confident smile.

However, it's important to note that not all dental procedures are eligible for HSA reimbursement. Cosmetic procedures, such as teeth whitening or veneers, are generally considered cosmetic in nature and are not eligible for HSA coverage. These procedures are typically performed for aesthetic purposes rather than for medical reasons.

It's always a good idea to consult with your HSA provider or tax advisor to determine which dental procedures are eligible for reimbursement. They can provide you with specific information regarding the coverage of different dental treatments and help you make informed decisions about using your HSA funds for dental care.

Remember, your HSA is a valuable resource that allows you to save and invest in your health. By using it wisely for dental work, you can prioritize your oral health and ensure that you receive the necessary treatments to maintain a healthy and beautiful smile.

What are the benefits of using a HSA for dental work?

There are several benefits to using your HSA for dental work. First and foremost, HSA contributions are tax-deductible, and the funds grow tax-free as long as they are used for eligible medical expenses. So by using your HSA to pay for dental procedures, you can effectively lower your overall tax liability.

Another benefit is the flexibility that HSAs offer. Unlike some other health insurance plans, there are no restrictions on which dental providers you can see or which treatments you can receive. You have the freedom to choose the dentist and treatment option that best meets your needs.

Additionally, if you have a high-deductible health plan (HDHP) that is paired with an HSA, using your HSA for dental expenses can help you meet your deductible and reduce your out-of-pocket costs.

What are the downsides of using a HSA for dental work?

While HSAs provide many benefits, there are also some downsides to consider when using them for dental work. One potential drawback is that you need to have an HSA-eligible health insurance plan in order to contribute to an HSA. If you don't have an HDHP, you won't be able to take advantage of the tax benefits of an HSA.

Another consideration is that HSAs have contribution limits. For 2024, the contribution limit for an individual with self-only coverage is $3,750, and for an individual with family coverage, it's $7,500. If you have significant dental expenses, your HSA funds may not cover all of your costs.

Lastly, it's important to keep track of your HSA expenses. You'll need to keep receipts and records of your dental procedures and payments in case of an IRS audit. It's also a good idea to check with your HSA provider about their documentation requirements to ensure you are in compliance.

HSA vs FSA for dental work

It's worth mentioning the difference between an HSA and a flexible spending account (FSA) when it comes to using them for dental work. Both accounts allow you to use pre-tax dollars to pay for dental procedures, but there are some key differences.

An HSA is available only to individuals with an HSA-eligible health insurance plan, while an FSA is typically offered as part of an employer-sponsored benefits package. Additionally, HSAs have a higher contribution limit and the funds roll over from year to year, whereas FSAs have a "use it or lose it" policy where you must use the funds by the end of the plan year or forfeit them.

However, unlike an HSA, you don't need an HDHP to contribute to an FSA. If you have the option to choose between an HSA and an FSA for dental expenses, it's important to weigh the benefits and limitations of each account and determine which one best fits your needs and financial situation.

Where can you find more information about HSA eligibility for dental work?

If you're considering using your HSA for dental work and want to learn more about the specific rules and regulations, there are several resources available to help you navigate through the process.

One valuable resource is the IRS website, which provides detailed information on HSA eligibility and eligible medical expenses. They have publications and forms that can assist you in understanding the requirements for using your HSA funds for dental procedures.

Your HSA provider is also a great source of information. They can clarify any specific guidelines or restrictions related to dental expenses and offer guidance on how to properly document and submit your expenses for reimbursement.

Lastly, consulting with a tax advisor or financial planner who specializes in HSAs can provide you with expert advice tailored to your unique situation. They can help you make informed decisions about using your HSA for dental work and ensure you maximize the tax benefits while staying compliant with the IRS rules.

In conclusion, yes, you can use your HSA for dental work, as dental expenses are considered eligible medical expenses under the IRS guidelines. There are numerous benefits to using your HSA for dental procedures, including tax advantages and flexibility. However, it's crucial to understand the limitations and restrictions that apply and consult with experts or reputable resources for accurate information. With the right knowledge, you can make the most of your HSA while taking care of your dental health.

What do you do if you're unsure?

If you’re unsure, it’s best to consult your HSA provider or a tax professional to confirm expense eligibility. 

What are HSA benefits for employers?

If you’re an employer, there are multiple benefits to offering HSA to your employees, including:

  • Attracting and retaining talent
  • It’s a cost-effective healthcare option
  • Enhances employee satisfaction and productivity
  • Increases the utilization of employee benefits
  • Has tax advantages for both you and your employees

Want to learn more? Check out our blog on what is an HSA

Get started with Forma today

Looking to offer an HSA as part of your employee benefits package? At Forma, we provide Pre-tax Accounts - including HSAs - to companies worldwide. 

If you want your business to profit from the employee and employer benefits of HSAs, fill out the form below, and one of our experts will be in touch.