How to Use Your HSA/FSA for Glasses and Contacts

Both HSA and FSA cover prescription eyewear.

If you don’t have vision insurance, these accounts help save you money on health care.

What Are HSA and FSA?

HSA and FSA are untaxed accounts that allow you to pay for medical expenses. There are some key differences between the two that we’ll discuss below.

FSA

FSA stands for Flexible Spending Account. 

To qualify for an FSA, you must have job-based health insurance. You can only open an FSA if your employer offers this option.

If an FSA is available to you, you can add funds to the account that don’t get taxed. You can then use these funds to pay for qualified medical expenses. Employers can also add contributions to your FSA, but it isn't required.

You’re allowed to contribute up to $2,850 per employer to your FSA. Your spouse can also contribute up to $2,850 to their own FSA.

FSA funds must be used within the year. Your employer may help with one of these two options:

1. Offer a grace period to spend your money
2. Allow you to carry over up to $550 to the following year

If these options aren’t available, any leftover funds will be forfeited.

HSA

HSA stands for Health Savings Account. This is an untaxed account that you manage yourself and can use to pay for eligible medical expenses.

To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). These insurance plans have a lower monthly premium but a higher deductible.

A deductible is an amount you must pay before your insurance plan starts paying.

You can’t open an HSA if you qualify for Medicare.

In 2022, the definition of an HDHP is any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. 

An HDHP’s total annual out-of-pocket expenses (deductibles, copayments, coinsurance, etc.) can’t be more than $7,000 for an individual or $14,000 for a family. Marketplace plans are included in this definition.

If you enroll in an HSA-eligible HDHP, you must open an HSA separately. You manage your own HSA account.

Once you open an HSA, you can contribute up to $3,650 for an individual or $7,300 for family coverage in 2022. 

You’ll deduct the amount deposited into your HSA from the income you pay federal income tax on. Remember that your employer can contribute to your HSA, but they’re not required to.

You can only use your HSA funds to pay for eligible medical expenses. These roll over from year to year. You can build tax-free savings to pay for medical care later. Some HSAs earn interest, which isn’t taxed.

HSA and FSA Coverage

You can use your HSA or FSA to pay for vision care, including:

• Prescription eyeglasses
• Prescription sunglasses
• Prescription contact lenses
• Eye exams
• LASIK and other vision correction surgery
• Reading glasses
• Eye drops
• Eye care co-pays or deductibles

In addition to vision care, common medical expenses covered by HSA and FSA include:

This is not a comprehensive list of eligible expenses. For a complete summary of eligible expenses, look at IRS Publication 502.

What Isn’t Covered by HSA and FSA?

Your HSA or FSA will not cover:

• Non-prescription glasses (aside from over-the-counter reading glasses)
• Non-prescription sunglasses
• Non-prescription contact lenses

Other common medical expenses that are not covered by HSAs or FSAs include:

For a complete summary of ineligible expenses, look at IRS Publication 502.

HSA vs. FSA Comparison Table

	Health Savings Account (HSA)	Flexible Savings Account (FSA)
Requirements	You must have a high-deductible health plan and can’t be eligible for Medicare	Must be offered by your employer
Managed by	You	Your employer
Annual contribution limit (2022)	$3,650 for an individual or $7,300 for a household	$2,850 per employer
Contribution schedule	You can change your contribution amount at  any time	Contribution amount can only be changed during open enrollments or after a change of circumstances
Withdrawal penalty (for non-medical expenses)	20% before age 65; no penalty after you turn 65	Employers decide if you can withdraw funds

Where Can I Get Glasses and Contacts with My HSA/FSA?

You can use your HSA and FSA funds to pay for glasses or contacts at:

• Doctor’s offices
• Pharmacies
• Online glasses retailers
• Online contact lens retailers

See an eye doctor if you have never purchased prescription glasses or contacts before. They will perform a complete eye exam and, if applicable, contact lens fitting.

Afterward, they will provide you with one prescription for your glasses and another for your contacts. Glasses and contact prescriptions are different.

You can then use your prescription to purchase glasses and contacts from your eye doctor or an online retailer.

We suggest purchasing glasses and contact lenses online if you already have a valid prescription. They are usually cheaper than purchasing eyewear from a doctor’s office. 

You don’t need to buy contacts/glasses from wherever you got the prescription.

Best Places to Buy Glasses with HSA/FSA

You can use your HSA or FSA funds at Warby Parker.

Read our full review of Warby Parker.

Read our full review of Liingo Eyewear.

Or read our article comparing Warby Parker vs. Liingo Eyewear.

Best Place to Buy Contacts with HSA/FSA

Read our full review of 1-800 Contacts.