Health Saving Account

[btchannell]

I was listening to the Joe Rogan Experience with Callie and Casey Means and learned something new.
Tax-free dollars from a Health Savings Account can be used to pay for gym memberships.
Apparently, it can also be used for food, but I have not been able to verify that, yet.
Each of the above requires a letter of medical necessity from your doctor, but who wouldn't qualify.
Just found it interesting and thought you might, as well. If nothing else, it would be a good podcast topic.

[Mark Rippetoe]

We'll have to look into that.

[Luke Schroeder]

Thanks for highlighting this. It's something we've been looking at within our Starting Strength Gyms network. Covered expenses within HSAs can vary from plan to plan, so it's really important for people who utilized HSAs to check the details of their coverage to see if it's an option. It tends to be the case for most, but unfortunately not all just yet.

This is most definitely something that we're working to market for our gyms. If payment can't be taken directly from an HSA debit card (unfortunately this is often the case as the HSA cards don't always play nice with payment processors), then our gyms can provide an invoice for the membership that the member can easily submit for reimbursement. We have several gyms that are doing that currently. Great way to save some money. Thank you for the reminder to market this more effectively!

[Jason Donaldson]

When y'all do look into it, Rip, I'm curious as to whether seminars (and camps) would qualify, as well.

[Stump]

Health Equity is the largest flexible benefits provider in the US.

Health Equity

The only thing I'm seeing that would come close to a gym membership is "Personal Trainer" and that requires a Letter of Medical Necessity (LMN).

The only thing I see food related is "Specialty Foods", LMN also required.

I'm sure you could get a doc to write you a LMN and call your gym membership a personal trainer and whatever you eat specialty foods. Dupe the system, get caught, penalty = 20%. After 65 y/o the 20% penalty goes away, but you still get taxed if you use HSA funds for non-qualified expenses.

I retired before 65. I'm paying $800/month for health insurance. I've looked at every possible way to spend the $25K I have socked away in my HSA.

While some companies and private insurers may offer discounts on gym memberships, you generally can’t use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment. They have to write a letter saying so in order for that expense to be eligible for reimbursement.

5 things you can’t use your FSA or HSA to pay for

[DavidCC]

I've had an HSA for years. I think they are not only a very effective way to save for healthcare expenses, but they also have some serious tax advantages. For example, any contribution you make to an HSA can be taken as an "above the line" deduction. Any withdrawal you make for qualified medical expenses are not included in your taxable income. Win - win. My HSA is a personal account that I opened at my bank, not one that I got through an employer, so I wasn't aware that covered expenses can vary from plan to plan. I was always under the impression that qualified medical expenses would be the same under any HSA. I have also never heard of the requirement to have a letter from your doctor attesting to the medical necessity of your expenses. I suppose that, in the event of an audit, it would be a good idea to have some documentation detailing your claimed expenses, but I have never had an expense questioned. In fact, on my tax return I just enter the total of my claimed expenses for the year.

For a general discussion of HSAs, see: Publication 969 (2023), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service

For a more detailed discussion of medical expenses, see: Topic no. 502, Medical and dental expenses | Internal Revenue Service