Has anyone had any luck using FSA money for a bike or trainers? It’s benefits time at work and I keep seeing the ads for it on Canyon and Wahoo. I was most likely going to use it for my 16 yo son to get him a gravel bike.
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Thanks. Has anyone actually had luck with it though? The best comment in there was everything is HSA eligible if you are brave. I’m not brave with the IRS, although guessing audits will be down the next 3 years.
Ha, I hope my sarcasm with that comment came across. That was NOT financial advice!
I heard it. That is what concerns me. Although if a gym membership is ok, why shouldn’t a bike.
I just looked through IRS documentation and what I took away was that if it’s just for generally staying healthy, sorry, you’re SOL. But if there’s a case that whatever is being purchased is for prevention of something, then it’s okay. Publication 502 (2024), Medical and Dental Expenses | Internal Revenue Service
From what I’ve read, that’s the gap that TrueMed is filling when writing the LMI to get the $$$ reimbursed. Looking for anything in family history to use to say “this bike / health club / etc is for prevention of that”. Your 16 y/o may be healthy now and not necessarily need the bike, but they make the argument that the bike is what will prevent that thing that you/spouse/grandparents are dealing with.
Again, the biggest wide berth they have is under the catchall of “mental health.” E.g., bike riding helps alleviate symptoms of my traumatic brain injury, so TrueMed approved that out right quick.
Preventative care is also that other helpful bucket…
I got it approved. Got $1600 off a Canyon. Got it approved for prevention given my hypercholesterolemia. couldn’t believe it worked
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The nice thing about FSA is it has to be reviewed and approved, which reduces your chances of getting caught up in an audit. If it’s HSA using it now is a terrible financial decision as it’s the best tax advantages account available in the US. Plus HSA doesn’t go through an approval process so it increases your risk of audit (still low, but not as low as FSA).
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If you have a Letter of Medical Necessity then it would be pretty hard for the IRS to say you violated the rule. Unless you lied to get the LMN.
I’ve used my HSA for years to pay for things through truemed. I actually pay for my coaching with a LMN for obesity/mental health. Why obesity? Well because despite BMI being nonsense, at 6’5” and 205lbs - I technically fall into the “Obese” BMI.
Don’t hate the player - hate the game. That being said, if you did get audited and they somehow voided the LMN, you would just have to pay the tax on the distribution of the money.
Go to Truemed.com and there is a whole host of things you can get that would make most people chuckle as necessity. The one that made me laugh out loud recently was that I can get HED wheels with my HSA money.
Note that I’m smart enough to not actually use my HSA money. I use my own money, keep the receipt,LMN and the record. I let my HSA money grow and when I want at any time in the future - I pay myself back.
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