Can I Pay for a Gym Membership With an HSA?
Demystify HSA usage for fitness and health costs. Learn the strict IRS criteria that determine if expenses like gym memberships qualify.
Health Savings Accounts (HSAs) offer a tax-advantaged way to save for and pay for healthcare expenses. Many individuals wonder if these accounts can be used to cover various health and wellness costs, including gym memberships. Understanding the specific rules for what qualifies as an eligible medical expense is important for utilizing an HSA.
What an HSA Is
A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals save for healthcare costs. To be eligible, an individual must be enrolled in a High-Deductible Health Plan (HDHP). HSAs offer three tax benefits: contributions are tax-deductible, funds grow tax-free through investments, and withdrawals are tax-free when used for qualified medical expenses.
General Rules for Qualified Medical Expenses
The Internal Revenue Service (IRS) outlines specific criteria for “qualified medical expenses.” These expenses must primarily be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses for general health improvement or recreation typically do not qualify unless they meet particular conditions. Examples include doctor visits, prescription medications, dental care, and vision care.
When Gym Memberships Qualify
Gym memberships are generally not qualified medical expenses, as they support general health or recreation. However, a specific exception exists: a gym membership can qualify if a physician prescribes it to treat a diagnosed medical condition. This applies to conditions such as obesity, heart disease, or diabetes, where physical activity is a direct part of the treatment plan.
For a gym membership to be eligible, its primary purpose must be medical care for a specific diagnosed condition, not general fitness. This typically requires a Letter of Medical Necessity (LMN) from a doctor. The LMN should detail the diagnosis, the specific treatment plan (including the gym membership), and explain how the membership directly relates to treating the medical condition. Retain all documentation, including the LMN and receipts, in case of an IRS audit.
Eligibility of Other Health-Related Costs
Other health-related costs may or may not qualify for HSA reimbursement under the IRS’s definition of medical care. Weight-loss programs generally qualify only if prescribed by a physician to treat a specific disease, such as obesity, hypertension, or diabetes, rather than for general weight loss. Exercise equipment is usually not qualified unless a doctor prescribes it for a specific medical condition to treat or prevent a health issue, not for general fitness.
Nutritional supplements are typically not HSA-eligible for general health. They qualify only if a medical professional prescribes them to treat a specific diagnosed medical condition, such as glucosamine for joint pain or prenatal vitamins. Health club dues, similar to gym memberships, are generally not eligible unless part of a specific medical treatment plan with proper documentation. Over-the-counter (OTC) medicines are now qualified medical expenses without a prescription due to changes from the CARES Act.