Can you use an HSA for dental? Yes, you can!
Health Savings Accounts (HSA) are a great way to save money on your dental care and keep more of it in the bank.
If you’re looking into using an HSA for dental, then this article will tell you all you need to know. So, let’s get to it!
Table of contents
- What is an HSA?
- How Does an HSA Work?
- How Much Can I Contribute to My HSA?
- Who Can Open an HSA Account?
- How Do I Deposit Money Into My HSA?
- What are Some Benefits of Using an HSA?
- What Dental Expenses Might not be Covered by HSA?
- Do You Need to Have Insurance before Opening an HSA?
- Final Thoughts on Using HSA for Dental?
- Frequently Asked Questions
What is an HSA?
An HSA is a tax-advantaged savings account that allows you to contribute pre-tax dollars to cover medical expenses.
The IRS considers HSAs as high-deductible health plans (HDHP), which means you must pay at least $1,200 before your insurance company starts covering any costs.
Once you reach this threshold, you have access to funds from your HSA that can be used toward most types of medical services.
How Does an HSA Work?
Your employer will set up an HSA for you, but you don’t have to do anything special to make it happen.
When you sign up for benefits through your job, you’ll get a form telling you how much you should put into your HSA each month.
If you choose not to participate in the plan, you won’t lose out on any money.
You can also opt out of contributing to your HSA if you want to, though doing so may mean missing out on other benefits offered by your employer.
You can only contribute to an HSA once per year. This means you can’t add to your existing balance or transfer money between accounts.
However, you can roll over unused funds from one year to the next.
How Much Can I Contribute to My HSA?
The amount you can contribute to your HSA varies depending on whether you work with a small business or large corporation.
The maximum contribution limit for small businesses is $3,400.
Large corporations offer their employees two options when it comes to contributing to their HSA.
Employees who work for companies with fewer than 50 full time equivalent employees can contribute up to $6,750 for 2019.
Those working for larger employers can contribute up to $11,500. In addition, both groups can contribute an additional $2,600 for dependent coverage.
Who Can Open an HSA Account?
Anyone can open an HSA. Your employer doesn’t even have to ask permission to set one up for you.
However, there are some restrictions when it comes to opening an HSA for yourself.
For example, you cannot open an HSA if you’re covered under COBRA or another type of group health plan.
Also, you cannot open an account if you’re already enrolled in Medicare Part B, Medicaid, Tricare Prime, or Military Health System.
How Do I Deposit Money Into My HSA?
There are three ways to deposit money into your HSA.
With direct debit, you can simply request that your bank withdraws a certain sum of money from your checking account every month.
It’s easy to set up and requires no paperwork.
Electronic transfers allow you to send money directly to your HSA without having to go through your bank first.
Checks are still the most common way to deposit money into your account, but they require more paperwork than either direct debit or electronic transfers.
What are Some Benefits of Using an HSA?
An HSA offers several advantages over traditional health insurance. For starters, you can use your money to pay for dental care.
In fact, many people prefer using their HSA for dental because they don’t have to worry about paying deductibles or copays.
Another benefit of an HSA is flexibility. Unlike traditional plans, you don’t have to wait until the end of the year to take advantage of tax breaks.
Instead, you can make contributions throughout the year. Finally, you can save money on premiums and taxes.
Traditional insurance plans often charge higher rates during times of high medical costs, which means you could be spending more money than necessary.
What Dental Expenses Might not be Covered by HSA?
You may not realize this, but there are some expenses that aren’t typically covered by an HSA.
For instance, you won’t get reimbursed for cosmetic procedures like teeth whitening, veneers, crowns, root canal therapy, implants, or other similar treatments.
Also, you won’t receive reimbursement for services such as fillings, extractions, gum disease treatment, or orthodontics.
If you need any of these types of services, you should consider getting them done before you open an HSA.
Otherwise, you might run out of money before you reach retirement age.
Do You Need to Have Insurance before Opening an HSA?
No, you do not need to have insurance before you open an HSA. However, you must meet minimum requirements to open an HSA.
- Your income must be below the IRS threshold for filing a tax return. This varies depending on whether you file jointly or separately.
- Your family size must be between two and nine individuals.
- You must be at least 19 years old.
- You also must be able to afford to lose all of your money. If you lose it, you will not be eligible to re-enroll in an HSA within 60 days.
Final Thoughts on Using HSA for Dental?
In conclusion, HSAs offer several benefits for those who want to cover their dental needs.
They provide tax savings, flexible coverage, and a chance to save money on premiums.
However, if you’re looking for comprehensive coverage, you’ll probably want to look elsewhere.
But if you just want to pay for routine checkups, tooth cleanings, and minor oral surgery, then an HSA makes sense.
HSA doesn’t cover all dental costs , so you’ll want to talk with your dentist about what’s included in his/her practice to avoid disappointment and expensive financial costs that may be unexpected.
Even so, an HSA is most certainly worth checking out. It’s one of the best ways to save money on healthcare while still providing adequate coverage.
Frequently Asked Questions
You can use HSA funds to pay for deductibles, copayments, coinsurance, and other qualified medical expenses. Withdrawals to pay eligible medical expenses are tax-free. Unspent HSA funds roll over from year to year, allowing you to build tax-free savings to pay for medical care later.
Generally, you can’t use your HSA to pay for expenses that don’t meaningfully promote the proper function of the body or prevent or treat illness or disease. Nutritional supplements and weight loss programs not prescribed by a physician are examples of expenses that would not be covered by your HSA.
Can I use my HSA for a gym membership? Typically no. Unless you have a letter from your doctor stating that the membership is necessary to treat an injury or underlying health condition, such as obesity, a gym membership isn’t a qualifying medical expense.