When Are Vitamins Considered FSA Eligible?
Understand the specific criteria and processes for making your vitamin purchases eligible for Flexible Spending Account reimbursement.
A Flexible Spending Account (FSA) allows individuals to set aside pre-tax money for eligible healthcare expenses. Many people wonder if vitamins qualify for reimbursement through these accounts. Understanding the specific criteria established by the Internal Revenue Service (IRS) is essential to determine when vitamin purchases are considered FSA eligible. This article clarifies the general eligibility rules for over-the-counter items and details the specific conditions under which vitamins can be reimbursed.
General FSA Eligibility for Over-the-Counter Items
FSA funds can be used for qualified medical expenses, which the IRS defines as costs incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Historically, many over-the-counter (OTC) medications required a doctor’s prescription for FSA reimbursement. However, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, permanently removed this requirement for most OTC medicines and products, effective January 1, 2020. This change means common items such as pain relievers, cold and flu remedies, and allergy medications are now eligible without a prescription.
Dietary supplements, which include most vitamins, are treated differently under IRS regulations. The IRS considers vitamins and supplements as items taken for general health and wellness rather than for treating a specific medical condition. Therefore, most vitamins are not eligible for FSA reimbursement without additional documentation.
Vitamins Requiring a Letter of Medical Necessity
For most vitamins to be FSA eligible, they must be prescribed by a physician or other licensed medical professional to treat a specific medical condition. This requirement is satisfied by obtaining a Letter of Medical Necessity (LMN). An LMN is a document from a healthcare provider explaining why a vitamin or supplement is medically necessary for an individual’s health issue. The LMN should state the diagnosed medical condition, describe how the vitamin will be used to treat or mitigate that condition, specify the recommended dosage, and indicate the duration of the treatment. This documentation helps demonstrate that the vitamin is for medical care and not merely for general health improvement.
Examples of vitamins that may become eligible with an LMN include Vitamin D for a diagnosed deficiency, iron supplements for anemia, or calcium for osteoporosis. While most vitamins require an LMN, prenatal vitamins and certain supplements like glucosamine and chondroitin, often used for joint pain, are FSA eligible without an LMN, as they are recognized for specific medical purposes.
Purchasing and Reimbursement Process
Once a vitamin is FSA eligible, individuals can use their FSA funds for the purchase. Common methods involve using an FSA debit card at the point of sale or submitting a claim for reimbursement. An FSA debit card functions similarly to a regular debit card but is used only for qualified medical expenses. When using the card, save all receipts, as the IRS requires substantiation for all FSA purchases.
If an FSA debit card cannot be used, or for out-of-pocket purchases, individuals must submit a claim for reimbursement to their FSA plan administrator. This claim requires an itemized receipt that includes the vendor’s name, the date of purchase, a clear description of the item, and the expense amount. For vitamins requiring an LMN, a copy of this letter must also be submitted with the reimbursement claim. Maintaining thorough records of all purchases and associated documentation is important, as the IRS or the plan administrator may request them for verification or in the event of an audit.