Can I Buy a Fitbit with My HSA? The Definitive Guide

The short answer is: generally, no, you cannot buy a Fitbit with your Health Savings Account (HSA) unless you have a Letter of Medical Necessity (LMN) from a physician. While Fitbits promote wellness and fitness, the IRS typically doesn’t consider them a qualified medical expense without that documentation.

Understanding HSAs and Qualified Medical Expenses

To understand why a Fitbit usually doesn’t qualify for HSA funds, let’s break down the basics of Health Savings Accounts and what the IRS defines as a qualified medical expense.

What is a Health Savings Account (HSA)?

An HSA is a tax-advantaged savings account available to individuals enrolled in a high-deductible health plan (HDHP). Contributions to an HSA are tax-deductible (or pre-tax if made through payroll deductions), the funds grow tax-free, and withdrawals are tax-free when used for qualified medical expenses. It’s a powerful tool for managing healthcare costs and planning for the future.

Defining Qualified Medical Expenses

The IRS defines qualified medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. Publication 502 from the IRS is the go-to resource for a comprehensive list. This includes doctor’s visits, prescription medications, dental care, and certain medical devices.

The Fitbit Dilemma: Prevention vs. Treatment

The crux of the Fitbit issue lies in the distinction between prevention and treatment. While maintaining a healthy lifestyle through fitness is undeniably beneficial for preventing disease, the IRS generally views devices like Fitbits as primarily for general wellness, not the direct treatment of a specific medical condition.

The Letter of Medical Necessity: Your Key to HSA Eligibility

There’s a crucial exception to the general rule: the Letter of Medical Necessity (LMN). An LMN is a written statement from your doctor recommending the use of a Fitbit to treat a specific medical condition.

How to Obtain a Letter of Medical Necessity

To obtain an LMN, consult with your physician. Explain your health condition and how a Fitbit could help manage it. For example, if you have diabetes, your doctor might write an LMN stating that a Fitbit can help you track your activity levels, manage your weight, and monitor your heart rate, all of which are crucial for managing your blood sugar levels.

What Should an LMN Include?

A valid LMN should include the following:

• Your name and date of birth.
• A diagnosis of your specific medical condition.
• A clear statement that the Fitbit is necessary to treat your condition.
• An explanation of how the Fitbit will help treat or manage your condition.
• The physician’s signature and date.

Important Considerations with LMNs

Keep in mind that even with an LMN, your HSA administrator may require additional documentation or have specific guidelines. It’s always best to check with them beforehand. Furthermore, the LMN should be recent and specific to your current condition. An old or generic letter might not be accepted. Also, remember to keep the LMN with your tax records in case of an audit.

Alternatives to Using HSA Funds for a Fitbit

If obtaining an LMN proves difficult, there are other options to consider.

• Employer Wellness Programs: Many employers offer wellness programs that incentivize employees to track their fitness activity. Some programs may provide subsidies or reimbursements for fitness trackers.
• Health Insurance Incentives: Some health insurance plans offer similar incentives for participating in wellness programs. Check your plan details to see if this is an option.
• Tax Deductions: While you can’t directly use HSA funds without an LMN, you might be able to deduct medical expenses exceeding 7.5% of your adjusted gross income (AGI). This could potentially include the cost of a Fitbit if it meets the IRS criteria for a deductible medical expense (which would still likely require an LMN).

Frequently Asked Questions (FAQs)

Here are some frequently asked questions to further clarify the rules and regulations surrounding using your HSA for a Fitbit.

FAQ 1: Can I use my HSA for a Fitbit if my doctor recommends it for general wellness?

No. The recommendation must be specifically for the treatment of a diagnosed medical condition, not just for general wellness or preventative care.

FAQ 2: Does the type of Fitbit matter? Are some models more likely to be HSA-eligible?

No. The specific model of the Fitbit doesn’t usually impact HSA eligibility. The determining factor is the Letter of Medical Necessity and its connection to a specific medical condition.

FAQ 3: What happens if I use my HSA funds for a Fitbit without a Letter of Medical Necessity?

If you use HSA funds for a non-qualified expense, the amount withdrawn will be subject to income tax and a 20% penalty (unless you are age 65 or older, or disabled, in which case the penalty is waived but the income tax still applies).

FAQ 4: Can I get reimbursed for a Fitbit I already purchased with my HSA if I get a Letter of Medical Necessity retroactively?

This depends on your HSA administrator’s policies. Some may allow it, while others may not. Contact your HSA administrator directly to inquire about their specific procedures.

FAQ 5: What medical conditions might qualify for a Letter of Medical Necessity for a Fitbit?

Potential qualifying conditions include diabetes, obesity, heart disease, sleep apnea, and certain mental health conditions where tracking activity levels and sleep patterns is medically necessary for treatment. However, the decision ultimately rests with your doctor.

FAQ 6: My HSA is through my employer. Can they provide me with a Letter of Medical Necessity?

No. Your employer cannot provide a Letter of Medical Necessity. You need to obtain it from your personal physician or a qualified healthcare provider.

FAQ 7: If a Fitbit helps me manage my weight and prevent diabetes, is that enough for HSA eligibility?

Not necessarily. While preventing diabetes is a worthy goal, the IRS typically requires a diagnosis of pre-diabetes or a related condition and a doctor’s specific recommendation for the Fitbit’s use in managing that condition.

FAQ 8: Are there any medical devices similar to Fitbits that are more likely to be HSA-eligible?

Yes. Medical devices specifically designed for treating a diagnosed medical condition, such as a continuous glucose monitor (CGM) for diabetics, are typically HSA-eligible without a Letter of Medical Necessity.

FAQ 9: Can I use my HSA to pay for the Fitbit Premium subscription?

Possibly, but this would also require an LMN connecting the subscription’s specific features to the treatment of your medical condition. For example, if the subscription provides personalized coaching for managing diabetes, your doctor might include this in the LMN.

FAQ 10: If my spouse has a qualifying medical condition, can I use my HSA to buy a Fitbit for them?

Yes, as long as your spouse is considered a dependent under IRS rules and the purchase meets the other HSA eligibility requirements, including the Letter of Medical Necessity.

FAQ 11: What documentation should I keep if I use my HSA to purchase a Fitbit with an LMN?

You should keep the original Letter of Medical Necessity, the Fitbit purchase receipt, and any other relevant documentation that supports the medical necessity of the purchase. Store these documents with your tax records.

FAQ 12: Where can I find more information about qualified medical expenses for HSAs?

You can find detailed information in IRS Publication 502, Medical and Dental Expenses. You can download this publication from the IRS website (www.irs.gov) or request a copy by mail. Consulting with a qualified tax advisor is also recommended for personalized guidance.