So you enroll in a high-deductible health plan (HDHP) and open a health savings account (HSA). That's a great step towards better financial health and preparation for future medical expenses. After a few years of maxing out your deductions, you'll have a healthy nest egg to fall back on.

But as you look at your HSA debit card, you start to wonder: Can you use your HSA to pay for that cosmetic surgery procedure you've always wanted? Read on to find out.

HSA Coverage and Cosmetic Procedures

We'll cut to the chase:

You can't use your HSA debit card to pay for cosmetic surgery. The only exception is if that procedure is necessary to improve a deformity caused by congenital disorders, disease or personal injury. Anything outside those exceptions does not apply. That means you can't use your HSA to pay for rhinoplasty, hair transplants or even teeth whitening.

But why?

HSA Eligible Expenses

It all comes down to what eligible expenses an HSA can cover. HSAs are highly tax-advantaged. There are countless benefits to having one. They can help you prepare for an uncertain medical future and improve your financial health.

Because they're so advantageous, the IRS sets guidelines for using them. There are annual contribution limits and strict rules on what you can use your HSA funds to cover.

The qualified medical expense list is long. It's far more flexible than it used to be, covering over-the-counter purchases like cough medicine and feminine hygiene products. But the biggest takeaway you should have is that your HSA only covers medically necessary expenses. You can use it to pay for doctor's visits, insurance deductibles and more. Those expenses can impact your health, help you avoid disease or offer treatment to help you get better.

Cosmetic surgery is purely a matter of personal choice. Outside the exceptions discussed earlier, these procedures don't affect your health. Therefore, they're considered optional and don't qualify for HSA coverage. Using your HSA to pay for those procedures will result in tax penalties.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at savings guide blog.