Are Running Shoes FSA Eligible? What You Need to Know

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax money for eligible medical expenses. These employer-sponsored benefits reduce taxable income, covering various health-related out-of-pocket costs. Funds contributed to an FSA are typically used within a specific plan year, though some plans offer grace periods or limited carryover options.

General FSA Eligibility for Health Expenses

The Internal Revenue Service (IRS) defines what constitutes an eligible medical expense for FSA reimbursement. Generally, expenses must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. Commonly eligible expenses include doctor’s office visits, prescription medications, vision care such as eyeglasses and contact lenses, and dental treatments. Over-the-counter medicines and medical supplies, like bandages or blood sugar test kits, are also frequently eligible. The expense must relate directly to medical care rather than general health improvement or cosmetic purposes.

Running Shoes and Medical Necessity

Running shoes are typically considered personal items for general fitness or athletic activities, making them generally ineligible for FSA reimbursement. However, these items can become eligible if they are specifically required to treat or alleviate a diagnosed medical condition. This distinction is crucial, as the purchase must be for a medical purpose, not for general well-being or exercise. For running shoes to qualify, a healthcare provider must determine they are medically necessary for a specific condition, such as plantar fasciitis, diabetic neuropathy, or other orthopedic issues. This necessity must be documented through a Letter of Medical Necessity (LMN).

The Letter of Medical Necessity must contain specific details to be valid for FSA purposes:
Patient’s name and diagnosis.
Identification of the recommended running shoes.
Explanation of how these shoes are necessary to alleviate the medical condition.
Description of how these specific shoes differ from standard footwear in addressing the condition.
Indication of the duration for which they are needed.
Healthcare provider’s name, credentials, signature, and date of issuance.

Submitting Your FSA Claim

Once the medically necessary running shoes have been purchased and the Letter of Medical Necessity (LMN) obtained, submit a claim for reimbursement. This process requires gathering specific documentation to substantiate the expense according to IRS regulations. The primary documents needed are the completed LMN and a detailed, itemized receipt for the running shoes.

It is important to note that a credit card receipt or a canceled check is typically not sufficient documentation. The itemized receipt must clearly show the vendor’s name, the purchase date, a description of the item purchased, and the total amount paid. Claims can usually be submitted through various methods, including an online portal provided by your FSA administrator, mail, or fax.

After submission, claims are generally processed within a few business days, often ranging from two to five days for online submissions. You will then receive notification regarding the approval or denial of your claim and, if approved, the reimbursement method. It is advisable to submit claims promptly, as most FSA plans have a “run-out” period, typically around 90 days after the plan year ends, during which claims for the prior year’s expenses must be submitted.