Can You Use Your FSA for a Treadmill?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for eligible healthcare expenses. This arrangement reduces taxable income, as funds are deducted from an employee’s paycheck before taxes are calculated. This can lead to significant tax savings. The primary purpose of an FSA is to help individuals manage out-of-pocket medical costs, including copayments, deductibles, and prescription medications, by using these tax-advantaged funds.

Understanding FSA Eligible Expenses

The Internal Revenue Service (IRS) provides guidelines for what constitutes an FSA-eligible medical expense. According to IRS Publication 502, medical expenses are defined as the costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. This broad definition covers a wide range of services, equipment, and supplies. While some items, like prescription medications or doctor’s visits, are clearly eligible, others may require additional substantiation to qualify for reimbursement.

For expenses that are not obviously medical in nature but are used to treat a specific medical condition, a “Letter of Medical Necessity” (LMN) is often required. An LMN is a document issued by a licensed healthcare provider, such as a physician, that verifies the product or service is medically necessary for the diagnosis, treatment, or prevention of a medical condition. The LMN serves as proof to the FSA administrator that the expense is for a legitimate medical purpose and not for general health improvement or personal use.

Specifics for a Treadmill Purchase

A treadmill can be an FSA-eligible expense, but only under specific conditions, building upon the requirement for medical necessity. For a treadmill to qualify, a licensed healthcare provider must prescribe it for the primary purpose of treating or alleviating a specific medical condition. The purchase must be solely for medical care, not for general health improvement or recreational use. IRS rules emphasize that expenses must primarily alleviate or prevent a physical or mental illness.

The Letter of Medical Necessity for a treadmill must contain specific details to justify its eligibility. It should clearly state the patient’s specific medical condition or diagnosis that necessitates the treadmill. The letter must also describe how the treadmill directly treats or alleviates that condition, outlining the recommended treatment, including the frequency and duration of use. If relevant, the LMN might also specify the type or features of the treadmill needed for the medical necessity. This documentation ensures that the expense aligns with IRS guidelines for qualified medical expenses.

Submitting Your Claim for Reimbursement

After purchasing a treadmill with the necessary Letter of Medical Necessity and the sales receipt, the next step is to submit a claim for reimbursement to your FSA administrator. Most FSA administrators offer several convenient methods for claim submission, including online portals, mobile applications, mail, or fax. It is important to complete the claim form accurately, providing details such as the date of purchase, the amount paid, and the type of expense.

When submitting your claim, you will need to include supporting documentation, which typically consists of the itemized sales receipt for the treadmill and the Letter of Medical Necessity. The receipt should clearly show the merchant’s name, the date of purchase, a description of the item, and the dollar amount. After submission, claims are typically processed within a few business days.