What type of expenses do health savings accounts (HSAs) typically cover?

Health savings accounts (HSAs) are specifically designed to help individuals save for medical expenses. The primary purpose of an HSA is to enable account holders to set aside money on a tax-advantaged basis to pay for qualified medical expenses, which the Internal Revenue Service defines clearly. These expenses include a wide range of health-related costs such as doctor's visits, prescription medications, dental care, and vision care, among others.

Qualified medical expenses are typically those that are necessary for the diagnosis, cure, mitigation, treatment, or prevention of disease. This focus on medical costs is fundamental to the functionality of HSAs, distinguishing them from other financial tools that may address different types of expenditures, such as retirement or insurance premiums. Therefore, the correct answer directly aligns with the intended use of HSAs, which is to cover qualified medical expenses.