Can You Use an FSA for a Gym Membership?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for certain out-of-pocket healthcare costs. This arrangement helps reduce taxable income, effectively saving money on eligible medical and dental expenses. FSAs cover a wide array of health-related services and products, including deductibles, copayments, and prescription medications.

Understanding FSA Eligibility for Health-Related Expenses

The Internal Revenue Service (IRS) defines “medical care” for FSA purposes as amounts paid primarily for the “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” This definition is central to determining what expenses qualify for reimbursement. Expenses that are merely beneficial for general health or wellness, such as vitamins for overall well-being or a vacation, are generally not considered eligible medical expenses unless they meet specific criteria.

The IRS provides guidance, such as in Publication 502, detailing what constitutes a qualified medical expense. This guidance clarifies that while many common medical costs like doctor visits, hospital stays, and prescription drugs are eligible, other items might require further justification. For an expense to be eligible, it must address a specific physical or mental defect or illness, not just promote general health.

Qualifying for Gym Membership Reimbursement

Gym memberships typically do not qualify as a general health expense under an FSA. However, they can be considered an eligible expense if primarily for the treatment or alleviation of a specific medical condition. To establish this medical necessity, a Letter of Medical Necessity (LOMN) or a prescription from a licensed healthcare provider is required.

The LOMN must clearly state a diagnosed medical condition, such as obesity, heart disease, diabetes, or hypertension, for which the gym membership is a necessary part of a treatment plan. The healthcare provider must explain how the gym activities directly address and alleviate this specific condition. This documentation typically needs to be renewed annually.

The Reimbursement Process

Once eligibility requirements are met, including obtaining a valid Letter of Medical Necessity, you can submit a claim for reimbursement to your FSA plan administrator. Required documentation typically includes proof of payment for the gym membership and the LOMN. Proof of payment means an itemized statement or receipt showing the date of service, type of service, amount, and provider’s name.

Claims can be submitted through an online portal, by mail, or by fax. While some FSA plans offer a debit card for direct payment, out-of-pocket payments require documentation submission for reimbursement. After submission, claims are processed within a few business days, and funds are disbursed via direct deposit or check, depending on the plan. It is important to note that expenses cannot be reimbursed if they are for services to be incurred in the future, even if paid upfront.