Can You Use FSA for Workout Equipment?

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax money from their paycheck to pay for eligible healthcare expenses. This financial tool helps reduce taxable income while providing funds for a range of medical, dental, and vision costs. The primary purpose of an FSA is to make healthcare more affordable by covering expenses not typically reimbursed by health insurance plans.

Eligibility for FSA Reimbursement

Expenses eligible for FSA reimbursement must align with Internal Revenue Service (IRS) guidelines, defined in IRS Publication 502. These guidelines specify that an expense must be primarily for the “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” While broad, this definition has limitations.

Items purchased for general health and wellness, including most workout equipment, do not qualify for FSA reimbursement without additional documentation. The IRS distinguishes between expenses incurred to treat a specific medical condition and those for general well-being. For example, a gym membership or exercise equipment intended solely for routine fitness improvement would not be eligible. This explains why a special process is necessary to qualify certain health-related purchases.

Qualifying Equipment with a Letter of Medical Necessity

To make workout equipment eligible for FSA reimbursement, a Letter of Medical Necessity (LMN) is required. An LMN is a formal document from a licensed healthcare professional (e.g., doctor, physical therapist). It explains why a specific item or service is medically necessary for an individual’s condition.

The LMN must detail the medical need. It should state the specific medical condition (e.g., obesity, diabetes, high blood pressure) necessitating the equipment. It must also describe how the workout equipment will directly diagnose, treat, mitigate, or prevent that medical condition. For instance, it might specify how a treadmill is needed to manage a cardiac condition.

The LMN should also indicate the duration for which the equipment is considered medically necessary. This duration can influence how long the expense remains eligible for reimbursement. It is advisable to obtain this letter before purchasing the equipment to ensure eligibility. If the treatment plan extends beyond the current plan year, a new LMN may be required for continued eligibility.

Submitting Your Claim for Reimbursement

After purchasing workout equipment and securing the Letter of Medical Necessity, submit a claim for reimbursement. Most FSA administrators offer several claim submission methods, including online portals, mobile applications, or mail-in forms. The process may vary by plan administrator.

When submitting your claim, provide specific documentation. This includes an itemized receipt for the workout equipment, showing the date of purchase, merchant’s name, item description, and total cost. The completed Letter of Medical Necessity must also be submitted with the receipt. This documentation confirms that the expense is qualified under IRS guidelines.

Upon submission, the claim undergoes review. Processing times vary, often ranging from a few business days to a couple of weeks. Funds are usually disbursed via direct deposit or check. Claims may be denied if the documentation is incomplete, illegible, or if the LMN does not adequately justify the medical necessity of the equipment.