Managing your healthcare costs can be tricky, especially if you're trying to stick to a budget while still getting the best care possible. Luckily, there are ways that you can save on those costs without sacrificing quality or skipping out on important procedures – one of them being Flexible Spending Accounts (FSAs).

But how much do you know about FSAs? Are they eligible for gym memberships and other non-medical expenses as well?

If these questions keep you up at night, don't worry – we've got all the answers in this blog post! Read on to learn about FSA eligibility and how it applies to gym memberships.

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) is a pre-tax benefit account designed to help you pay for eligible medical expenses. It’s set up through your employer and holds the money you can use toward qualified healthcare costs, including doctor visits, prescription drugs, eyeglasses, and more.

What it Covers?

FSAs cover a wide variety of healthcare-related expenses, such as:

• Doctor visits & checkups

• Hospital stays & surgeries

• Prescription drugs

• Over-the-counter drugs & medicines (with a prescription)

• Dental care & orthodontics

• Vision care (eyeglasses, contacts, etc.)

• Mental health & substance abuse treatment

• Physical therapy & chiropractic services

• Lab tests & x-rays

• Nursing home care

Additionally, an FSA can also be used for certain non-medical expenses, such as:

• Gym memberships (with a doctor’s recommendation)

• Weight loss programs (with a doctor’s recommendation)

• Smoking cessation programs (with a doctor’s recommendation).

How Do Flexible Spending Accounts Work?

A Flexible Spending Account (FSA) is a tax-advantaged savings plan that allows you to set aside money on a pre-tax basis to pay for medical expenses. The amount you can save in an FSA depends on your plan and could be up to $2,650 annually (for 2021).

Money deposited into an FSA can cover many medical expenses, including doctor visits, prescription drugs, and certain dental treatments.

Are Gym Memberships Eligible for FSA?

The answer is a definitive no. Flexible Spending Accounts are meant for medical expenses not covered by your healthcare plans, such as co-pays, deductibles, and other out-of-pocket costs.

According to the IRS, the expense must be considered “eligible” to qualify for reimbursement from an FSA. Unfortunately, gym memberships don’t qualify as “medical expenses” under these guidelines and therefore aren't eligible for FSA reimbursement.

That said, other healthcare-related activities do qualify for FSAs. For example, a person with diabetes may use an FSA to pay for their diabetic health supplies.

Similarly, you can use your FSA to cover the costs of weight-loss programs prescribed by a doctor, such as Weight Watchers or Jenny Craig. However, any program not medically necessary or prescribed by a doctor would be ineligible for FSA reimbursement.

Benefits of Working Out and Other Fitness Costs Covered by an FSA

1. Exercise can help reduce stress and improve your overall quality of life, so it’s important to ensure you have the resources to take care of yourself.

2. With an FSA, you can use your funds to pay for certain fitness-related expenses that are deemed “eligible” by the IRS, such as membership at a gym or fitness center, exercise classes, personal training sessions, and even health club dues.

3. You can also use your FSA to purchase sports equipment such as weights, resistance bands, yoga mats, and more for physical activity.

4. Finally, you can use your FSA to cover the cost of physical therapy sessions for both preventative and rehabilitative purposes.

How to Maximize Your FSA Benefits with a Gym Membership?

Not only can an FSA help you cover the cost of your gym membership and other fitness-related expenses, but it can also help you save on various other healthcare costs.

Commonly eligible expenses include prescription medications, certain medical procedures, vision care, mental health services, and weight loss programs! By taking advantage of these savings opportunities, you can maximize your FSA benefits and help save more on healthcare costs.

When saving with an FSA, it pays to know exactly what your plan covers and how much you can contribute each year. Take the time to review your plan's details so that you can make the most of your FSA and take advantage of all its benefits.

Strategies to Make the Most Out of Your Gym Membership with an FSA:

1. Take advantage of the pre-tax benefit: An FSA allows you to set aside funds before taxes are taken out, so you can save money on your gym membership – and any other eligible expenses – by using an FSA to pay for them.

2. Check with your insurance provider: Check in with your insurance provider to ensure your gym membership – and any other expenses you may be considering – are considered "eligible" under your FSA plan.

3. Maximize savings: Since FSAs allow you to set aside pre-tax funds, it can be helpful to set aside as much of your annual allowance for healthcare costs as possible to maximize the savings you get from your FSA.

4. Consider a longer-term membership: If you're confident that your gym membership is eligible for an FSA, it can be beneficial to sign up for a longer-term or annual plan (depending on the type of gym membership you have) to maximize the amount you save with your pre-tax contribution.

5. Know the rules: Before you sign up for a gym membership – or any other eligible expense – make sure you understand the FSA rules and regulations to consider your expenses eligible for reimbursement.

FAQs About Using FSAs for Gym Memberships:

Are gym memberships eligible for FSA reimbursement?

Yes – gym membership dues are considered qualified medical expenses and, therefore, can be included in your FSA. However, the cost must be incurred within the plan year to qualify for reimbursement.

Additionally, any fees associated with enrollment or maintenance of a gym membership are not eligible for FSA reimbursement.

Can I use my FSA funds to purchase equipment or apparel related to fitness?

Yes – medical supplies, equipment, and clothing used specifically for medical reasons can be purchased with your FSA funds. However, exercise machines, fitness trackers, and gym attire are not eligible for FSA reimbursement.

Can I use my FSA funds for personal training sessions?

Yes – personal training sessions to treat a medical condition are eligible expenses and can be paid with your FSA funds. However, if the session is simply for recreational purposes, it is not eligible for reimbursement from an FSA.

Conclusion:

Flexible Spending Accounts (FSAs) are a great way to manage healthcare costs without sacrificing quality or skipping out on important procedures. With an FSA, you can save tax-free money and use it for eligible medical expenses such as doctor's visits, prescriptions, and gym memberships.

Though there are certain restrictions on which expenses are eligible for an FSA, understanding the rules and regulations can help you make the most of this great savings tool. So if you're looking to save money on healthcare expenses, consider taking advantage of a Flexible Spending Account today!