07.10.26

Advisors Find Clients Often Overlook Eligible HSA Expenses

by: Kathryn Miller

Advisors reviewing the IRS list of qualified health savings account expenses with clients may identify $500 to $2,000 in annual costs that were previously paid with after-tax dollars. Eligible expenses can include physical therapy, mental health care, acupuncture, certain long-term care premiums and medically necessary home modifications. HSA investment assets reached nearly $85 billion at the end of 2025, up 33% from a year earlier, though only about 10% of accounts held invested assets. Advisors stressed that clients should retain receipts and distinguish medically necessary expenses from general wellness purchases.

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