Can You Buy a Treadmill With an FSA?

Flexible Spending Accounts (FSAs) offer a tax-advantaged way for individuals to pay for qualified medical expenses. Employers typically offer these accounts as part of a benefits package, allowing participants to set aside pre-tax money from their paychecks for healthcare costs. FSA funds can be used for a wide range of eligible medical, dental, and vision expenses, reducing taxable income.

Qualifying a Treadmill as a Medical Expense

For a treadmill to be a qualified medical expense under an FSA, its purchase must be primarily for medical care to alleviate or prevent a specific physical or mental illness or disability. General health improvements or fitness goals without a diagnosed medical condition do not qualify. IRS guidelines state expenses must directly relate to diagnosing, treating, or preventing a disease, or affecting body function.

To establish medical necessity, a Letter of Medical Necessity (LOMN) from a licensed healthcare provider is required. This letter documents that the treadmill is necessary to treat a specific medical condition. The LOMN must clearly state the medical condition or diagnosis for which the treadmill is prescribed and explain how it will treat or mitigate this condition, detailing expected therapeutic benefits.

The letter should also specify the duration for which the treadmill is needed as part of the treatment plan. It must be signed and dated by the prescribing physician or authorized healthcare professional. Without this specific medical documentation, a treadmill purchased for general exercise or weight loss without a doctor’s diagnosis will not be eligible for FSA reimbursement.

Documentation and Reimbursement Process

After purchasing a treadmill deemed medically necessary, submit a claim to the FSA administrator for reimbursement. Retain all detailed receipts from the purchase as proof of the expense incurred. The receipt should include the vendor’s name, purchase date, item description, and amount paid.

When submitting a claim, include both the detailed purchase receipt and the completed Letter of Medical Necessity. FSA administrators require these documents to verify expense eligibility before processing reimbursement.

While some individuals may use an FSA debit card, it might be declined for a large, non-standard medical item like a treadmill without prior substantiation. This often occurs because the transaction cannot be automatically verified as eligible at the point of sale. If a debit card transaction is declined, pay using another method and submit a manual claim with all supporting documentation.

Most FSA claims are processed quickly, often within one to five business days. Reimbursements are typically sent via direct deposit shortly thereafter. Adhere to any submission deadlines set by your FSA plan, as funds are subject to “use-it-or-lose-it” rules, meaning unused funds may be forfeited at year-end, though some plans offer a grace period or limited carryover.

Important Considerations for Treadmill Purchases

When considering a treadmill purchase with FSA funds, remember the “primary purpose” rule: the treadmill’s use must be for medical care to treat a specific health condition, not general fitness. For instance, a treadmill purchased solely for weight loss without a physician-diagnosed condition like obesity would not qualify.

FSA plans can have slight variations in their rules and eligible expense lists. While IRS guidelines provide a broad framework, individual plan administrators may interpret these guidelines or have additional requirements. Always contact your specific FSA plan administrator before making a significant purchase like a treadmill to confirm eligibility and ensure compliance.