Why
Publication 502 allows procedures such as in vitro fertilization, including temporary storage of eggs or sperm, performed on you, your spouse or your dependent to overcome an inability to have children. It also covers surgery, including reversing an earlier procedure that prevented having children.
Surrogacy is excluded. The IRS says identifying, retaining, compensating and paying for the medical care of a gestational surrogate doesn't count, because the surrogate isn't you, your spouse or your dependent.
Egg freezing with no existing inability to have children is less clear, since the rule is written around overcoming one.
What to keep
- Itemized clinic bills, by procedure.
- Pharmacy receipts for fertility drugs.
- Storage invoices, with dates.
Watch out for
- The publication says temporary storage. Years of storage fees are less clearly covered.
If you plan to reimburse yourself later
IRS Notice 2004-50, Q&A 39, sets no deadline, as long as the expense came after your HSA was established and your records show it wasn't paid by another source or deducted on a tax return. See what records the IRS expects and how long to keep them.