Are Gym Memberships an FSA Eligible Expense?

A Flexible Spending Account (FSA) is a tax-advantaged financial arrangement designed to help individuals manage healthcare costs. This plan allows you to set aside pre-tax money from your paycheck specifically for eligible medical expenses. The primary purpose is to reduce your taxable income while providing funds for out-of-pocket healthcare needs. A common question arises regarding whether gym memberships qualify as an eligible expense under these accounts.

General Eligibility for Expenses

The Internal Revenue Service (IRS) defines “medical care” as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. This definition, found in Internal Revenue Code Section 213, sets the standard for what qualifies as an eligible expense for FSA reimbursement. Expenses that are merely beneficial to general health are not considered medical care for FSA purposes.

Consequently, health club dues, gym memberships, or other fitness-related expenses typically do not qualify as eligible medical expenses. These costs are generally viewed as promoting overall health and wellness, rather than addressing a specific medical condition. For an expense to be eligible, it must directly relate to a medical condition.

Conditions for Eligibility

A gym membership can become an eligible FSA expense, but only under specific conditions. The key requirement is obtaining a Letter of Medical Necessity (LMN) from a licensed healthcare professional. This document serves as certification that the gym membership is necessary to treat a diagnosed medical condition.

The LMN must explicitly state a specific medical condition, such as obesity, hypertension, heart disease, or diabetes, that the gym membership is intended to treat, mitigate, or prevent. It needs to clearly explain how the exercise regimen directly addresses this particular condition, rather than being for general fitness. The letter should also specify the recommended duration for which the gym membership is medically necessary as part of the treatment plan.

The expense for the gym membership must be primarily for medical care, not simply for general health improvement or personal benefit. The LMN remains valid for one year from the date of signature and requires annual renewal to continue claiming the expense. Without this documentation, gym memberships remain ineligible for FSA reimbursement.

Submitting a Claim for Reimbursement

Once eligibility conditions are met, including securing a Letter of Medical Necessity (LMN), submit a claim for reimbursement to your FSA administrator. This process requires documentation to ensure the claim is approved. You will need both the LMN and itemized receipts from the gym.

The itemized receipts must clearly show the provider’s name (the gym), the date of service, a description of the service (e.g., monthly membership fee), and the total amount paid. Generic credit card receipts or canceled checks are typically not sufficient, as they often lack the necessary detail regarding the service provided. An Explanation of Benefits (EOB) from an insurance carrier, if applicable, can also serve as supporting documentation.

Claims can be submitted through various channels, including online portals, mobile applications, fax, or mail. When completing the claim form, you will need to provide your personal details, the expense amount, and the date the service was incurred. Reimbursement is for expenses already incurred; prepayment for future services, such as an annual membership paid upfront, is generally not reimbursable until the service period has passed.

After submission, claims are processed within one to two business days. Reimbursement is then issued via direct deposit or check. Many FSA plans have a “run-out” period, which is an extended deadline, commonly 90 days or until March 31 of the following calendar year, allowing you to submit claims for expenses incurred during the previous plan year.