Can You Buy a Treadmill With an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account for qualified medical expenses. These accounts help manage healthcare costs and offer tax benefits. A common question is whether HSA funds can be used for health-related purchases like a treadmill. This article explores the conditions under which a treadmill might be an eligible HSA expense and the steps to ensure compliance.

Understanding Eligible HSA Expenses

The Internal Revenue Service (IRS) defines “eligible medical expenses” in Publication 502, “Medical and Dental Expenses.” These are costs paid primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body structure or function. This broad definition covers a range of common healthcare needs.

Eligible expenses include doctor visits, prescription medications, dental care, and vision services. However, expenses solely for general health improvement or well-being are not eligible. The expense’s primary purpose must directly relate to a medical condition or treatment, not just overall fitness or convenience.

Qualifying a Treadmill as an Eligible Expense

A treadmill, like other exercise equipment, is generally not considered an eligible HSA expense if purchased for general health or fitness purposes. This is because the IRS distinguishes between items for overall wellness and those specifically for medical care. Simply wanting to improve your physical fitness does not meet the criteria for an eligible medical expense.

A treadmill can qualify as an eligible expense, however, when it is prescribed by a medical professional to treat a specific medical condition. This requires a “Letter of Medical Necessity” (LOMN) from a qualified medical practitioner. The LOMN certifies the treadmill is required for the diagnosis, cure, mitigation, treatment, or prevention of a specific disease or medical condition.

For example, a treadmill might be deemed medically necessary for rehabilitation after surgery, as part of a treatment plan for certain cardiovascular conditions, or for obesity management when prescribed by a doctor. The LOMN should clearly state the medical condition, how the treadmill will treat or alleviate it, and the expected duration of its use. The treadmill’s primary purpose must be medical care.

Required Documentation and Record Keeping

To justify a treadmill purchase with HSA funds, specific documentation is essential. The most important document is the Letter of Medical Necessity (LOMN) from a qualified medical professional. This letter should include the patient’s diagnosis, explain how the treadmill will treat the medical condition, and indicate the anticipated duration of the need. For ongoing needs, a renewed LOMN may be required annually.

In addition to the LOMN, you must retain detailed receipts for the treadmill purchase, showing the date, vendor, item description, and cost. Keep any other supporting medical records, such as physician’s notes or diagnostic reports. Maintaining thorough records is important for potential IRS audits, as you are responsible for substantiating the expense. Organizing these documents can simplify future verification.

Using Your HSA Funds

Once eligibility and documentation are established, you can use HSA funds for the treadmill purchase. There are two primary methods for accessing your HSA funds. The first is direct payment, using an HSA-linked debit card or checks from your HSA administrator at the time of sale. This offers immediate payment for the eligible expense.

Alternatively, you can choose to pay for the treadmill out-of-pocket using personal funds and then reimburse yourself from your HSA. To do this, submit a claim to your HSA administrator with purchase receipts. While the LOMN is primarily for IRS substantiation, some administrators may require it for reimbursement claims. Regardless of the method, maintain meticulous records of all transactions to ensure compliance with IRS regulations.