Welcoming a new child is great, merely pricey. Even if you're blessed to have a nascence with no complications, the bill is still hefty to cover what insurance does not. A bit of planning can help reduce your family'due south stress around this cost and help you focus on your new family member. An HSA can go a long way to help with this attempt. Continue reading for how to use this unique health care account to help with this momentous event.

 "Behold, children are a heritage from the LORD, the fruit of the womb a advantage." Psalm 127:3 ESV

What is an HSA?

A Wellness Savings Account is a kind of business relationship you can take if you as well have a type of medical insurance programme designated as a High Deductible Health Plan (HDHP). For employer provided health insurance, your employer should let y'all know if yous are eligible for a HSA. The idea backside an HSA is yous put money into the account on a regular basis and then withdraw money afterwards when major medical expenses ascend. HSAs are unique types of accounts because they are "triple tax gratis."

When you contribute to an HSA, you lot receive a revenue enhancement deduction. While coin is in an HSA, if information technology earns interest or grows, yous pay no taxes. Later on, as long as you withdraw the money for what the IRS deems a "qualified medical expense", you lot pay no taxes and so either. Although, keep in mind the HSA is used to cover what insurance doesn't or what is known as "out of pocket expenses".

Tin can an HSA be used to pay for childbirth?

The IRS maintains a list of qualified medical expenses, just almost all expenses related childbirth are eligible. This includes expenses like delivery of a child, medications (epidural), C-section, and more than. Because the HSA covers your family as a whole, this includes expenses specific to Mom and/or the baby. Equally with anything involving the IRS, there's more to it. Go along reading for more on how to approach this question.

Examples of Expenses that tin can be reimbursed with an HSA

Each of these has requirements and stipulations from the IRS. Verify your situation is eligible before taking activity.

  • Breast pumps and lactation supplies
  • Doula fees
  • Fertility Enhancement (includes in vitro fertilization)
  • Hospital Services
  • Certain Insurance Premiums
  • Lab Fees
  • Lodging
  • Meals
  • Medicines (Such every bit epidural)
  • Midwife
  • Surgery
  • Some Transportation Costs

How to save in an HSA to pay for a baby

Most people who have an HSA do so through piece of work. If you're in that gunkhole, and then your employer will help you gear up an business relationship. In the HSA account, you may have the option to choose investments or other means to grow your wellness care dollars. As for putting money in, employer-based HSAs arrive piece of cake by allowing yous to deduct money out of each paycheck. This is generally something you ready during benefits enrollment but can besides adjust during the year.

Spread the cost over multiple years

Welcoming a new child, fifty-fifty with "good" insurance, comes with a large neb. Saving in an HSA can help interruption the cost up over several years. How? Let'south say you lot and your spouse are planning to have a child in two years. You estimate the amount insurance will non comprehend to be $6,000. You decide to save $ii,000 this year and adjacent yr in your family unit's HSA. In the year your new child is born, you put some other $2,000 into the HSA. Afterward you're back dwelling house with Mom, Dad, and baby, y'all withdraw money from the HSA to comprehend the cost of your new addition. Would you rather have set aside $2,000 during a single year (3 years in a row) or accept a pecker for $6,000 show up and be liable all at once?

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Use Your HSA for other Pregnancy Costs

We tend to focus on the arrival your new child for the cost question. That'due south with practiced reason since that's the fourth dimension some of the largest bills arrive. You can use your HSA to assist with costs that arise during the pregnancy besides. This includes items such as visits to the OB-GYN, prenatal vitamins, pregnancy tests, prenatal ultrasounds, prescription medicine, and some physical exams. This is only a sample, then be sure to do your research before bold an expense does or does not qualify.

Pregnancy Tests, prenatal vitamins, and OB-GYN visits long earlier baby arrives are all eligible for HSA expenses.

Things to recollect for your HSA and baby program

It's important when yous withdraw coin from an HSA to keep fantabulous records. In the upshot you are ever audited, the authorities volition enquire you to prove money taken from an HSA was used for qualified medical expenses. It's a good practice to keep a file with all medical bills and receipts during a given year. The IRS wants to know when money goes into or out of an HSA. Be prepared to answer that question equally part of filing your taxes. Also recollect that the rest of the family has health care needs as well. If y'all're deciding to fund an HSA, business relationship for those needs likewise.

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