- Qualified medical expenses — tax-exempt
- Medicare premiums — tax-exempt
- Qualified long-term care insurance premiums and qualified long-term care services — tax-exempt
- Qualified medical expenses that occurred previously and were paid out of pocket (but after the HSA was established) — tax-exempt
- Supplemental income for nonqualified expenses, such as home expenses, travel, or gifts for friends and family — taxed as ordinary income, but no 20% penalty tax after age 65
- Payments for in-patient hospital care
- Payments for residential nursing home care for medical reasons (If the main reason for this type of care is not medical, then only the medical expenses are qualified)
- In-home nursing services connected with patient care
