November 27, 2018

Are Fitness Trackers HSA Eligible?

By Aaron Mitchell, Alliance Benefits

One of the common questions we get regarding the HSA is if you can purchase a fitness tracker using your saved HSA funds. Can you purchase a fancy new Apple Watch tax free using your HSA dollars? An Apple Watch does potentially include access to a lot of health and medical tracking information right?

Unfortunately the answer to this question is usually no. This is because according to the IRS, fitness trackers are used to promote what the IRS terms “general health”. Expenses under this general health definition are not considered HSA eligible expenses.  However if a Letter of Medical Necessity for a fitness tracker is written up by a doctor or medical professional, the IRS would then allow it as an HSA eligible purchase. The tracker is now considered needed for the treatment of a specific medical condition which then goes beyond the IRS defined general health category.

Other ineligible expenses under the general health definition include:

  • Over The Counter Medications Unless Prescribed
  • Childcare
  • Cosmetic Surgery
  • Health Club Dues
  • Nutritional Supplements Such As Vitamins
  • Weight Loss Programs
  • Swimming Lessons

More information about HSA eligible purchases can be found on the IRS website, or in the link below.

https://www.irs.gov/pub/irs-pdf/p502.pdf

 

Aaron joined Alliance Benefits in September 2017. As a Benefits Consultant, he works on building relationships with churches and districts, and assists with health insurance and retirement 403(b) questions. He is assigned to serve the churches and districts in the Midwestern and Northeastern United States. 


Posted in: Health Plan Tools