Can I Buy Gym Equipment With an HSA?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. For individuals with high-deductible health plans, contributions and withdrawals for eligible healthcare costs are tax-free. While HSAs cover many medical services, whether gym equipment qualifies is a common question. Generally, gym equipment is not a qualified medical expense, but exceptions exist under specific conditions.

General Rules for HSA Qualified Expenses

The Internal Revenue Service (IRS) defines a “qualified medical expense” as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any part or function of the body. This definition is detailed in IRS Publication 502. Expenses must primarily alleviate or prevent a physical or mental defect or illness.

Typical qualified expenses include doctor visits, prescription medications, dental care, vision services, and mental health treatments. An expense must serve a medical purpose, not merely benefit general health. For example, while vitamins might support overall well-being, they are generally not eligible unless prescribed to treat a specific medical condition.

Conditions for Including Gym Equipment as an HSA Expense

Gym equipment is not typically considered a qualified medical expense when purchased for general health improvement or overall fitness. However, an exception exists if the equipment is medically necessary for the treatment or mitigation of a specific diagnosed medical condition.

To qualify, a licensed healthcare provider, such as a physician, must issue a Letter of Medical Necessity (LMN). This document must explicitly state that the equipment is required to treat a specific medical condition, such as obesity, diabetes, hypertension, cardiovascular disease, or for rehabilitation following an injury or surgery. The LMN acts as a prescription, confirming that the equipment directly addresses a diagnosed health issue.

Examples of equipment that might qualify under these circumstances include a treadmill prescribed for a cardiac rehabilitation program or a specialized exercise bike for a joint condition. The key is that the equipment’s use must be directly tied to a medical treatment plan rather than simply enhancing general fitness. Without a clear medical necessity and supporting documentation, gym equipment purchases will not be eligible.

Documentation and Record-Keeping for HSA Expenses

Maintaining meticulous records is a vital responsibility for HSA account holders. The IRS requires individuals to retain documentation to demonstrate that distributions from an HSA were used exclusively for qualified medical expenses.

Key records to keep include the physician’s Letter of Medical Necessity (LMN), detailed receipts for the gym equipment purchase, and any Explanation of Benefits (EOB) statements from your health plan. Records should be retained for at least three years after filing the tax return, though some suggest keeping them longer, up to seven years, to be safe.

HSA funds can be accessed in several ways, including using an HSA debit card directly at the point of sale, if accepted by the vendor. Alternatively, you can pay for the expense out-of-pocket and then reimburse yourself from your HSA. Regardless of the payment method, it is the account holder’s responsibility to ensure that all expenses meet IRS qualifications. Using HSA funds for non-qualified expenses can result in income tax on the withdrawn amount, plus a 20% penalty if the account holder is under age 65.