Health Savings Accounts (HSAs) are a common method of covering healthcare expenses, which can be tax-advantaged to save people money on medical bills. These plans are usually utilized to cover medical treatments, prescription drugs, and some forms of wellness care. However, when it comes to the use of your HSA on a personal trainer, you may be asking yourself whether it is applicable. In this article, we will discuss whether HSA funds can be used to pay personal training services, the guidelines, and how to make the best out of the rules.
What is an HSA?
Before getting into the details of using HSA funds to pay a personal trainer, it is necessary to get a clearer picture of what an HSA is. A Health Savings Account (HSA) is an account that is tax-advantaged and is used to save money to cover qualified medical expenses. HSAs are generally combined with high-deductible health plans (HDHPs), and the money in the account can be used to cover a broad variety of medical services, such as doctor visits, prescriptions, dental, and vision care.
HSAs offer several benefits, such as:
Tax-Free Contributions: HSA contributions are made on a pre-tax basis, which reduces your taxable income.
Tax-Free Growth: Earnings on the account grow tax-free.
Tax-Free Withdrawals: Withdrawals are tax-free when they are used in qualified medical expenses.
Not every expense is eligible and it is important to know what kind of services can be taken into consideration.
Can You Use HSA Funds for Personal Training?
The IRS is usually very particular when it comes to expenses that can be paid using HSA funds. The services of a personal trainer are not usually covered in most cases since personal training is not regarded as a medical expense but more of a wellness or fitness expense. However, there are some exceptions.
When Can Personal Training be Covered by HSA?
Medical Necessity and Doctor’s Prescription
The most important aspect in deciding whether personal training can be covered under an HSA is whether the personal training is medically necessary. The IRS guidelines state that the HSA money can only be spent on medical expenses, which are deemed to be necessary to treat a particular medical condition or injury. That is, when a physician recommends personal training as a means of treating a certain health condition or injury, it can be considered.
As an example, when a physician prescribes personal training to aid in rehabilitation following a surgery or to treat a chronic condition (obesity, diabetes, heart disease), the cost may be covered by your HSA. In this example, the personal trainer would have to offer services that are directly relevant to the treatment of the medical condition, e.g. helping to improve strength, flexibility, or cardiovascular health after the surgery.
Specific Health Conditions
In case you have a health condition that can be classified as a medical need, you might be able to spend HSA funds on personal training as a part of a more comprehensive treatment plan.
Examples of conditions that might qualify personal training to be covered by HSA include:
Obesity: In case a physician prescribes weight loss management, including exercise, personal training may be a medically necessary service.
Cardiovascular Problems: Following a heart attack or stroke, exercise and physical rehabilitation can be involved as a part of the healing process.
Chronic Pain or Injury Rehabilitation: Physical therapy or personal training to recover/manage a sports injury or chronic pain may qualify, as long as it is prescribed by a medical professional.
It is necessary to mention that personal training aimed at general fitness purposes, e.g. weight loss, toning, or muscle building, would not normally be covered, as these are wellness rather than medical needs.
What Do You Need to Do to Use HSA for Personal Training?
In the event you feel that personal training may be a qualified expense under your HSA, follow the steps below to make sure you are adhering to the IRS guidelines:
Get a Prescription or Recommendation from a Doctor
In order to spend your HSA money on personal training, you will be required to obtain a written prescription or recommendation of a licensed healthcare provider. The prescription must indicate that personal training is medically necessary in the treatment of a certain condition. As an example, a physician may prescribe physical activity as part of a weight loss program to an obese patient or a post-surgery patient.
Keep Detailed Records
The IRS can ask you to submit documentation that the personal training services are medically necessary. Maintain records of the prescription of the doctor, the services of the personal trainer and how they are related to your health condition. The personal trainer should keep receipts of his/her services, with a clear relationship to the treatment plan that your healthcare provider has laid out.
Submit for Reimbursement
After you have made the payment of the personal training services, you can send the expenses to your HSA administrator to be reimbursed. Ensure that you attach all the required documents, including the prescription, receipts, and any other document that is relevant to your medical condition.
In case your HSA is audited, the IRS can demand evidence that the personal training services were medically necessary and were used to treat a particular medical condition. Failure to give proper documentation may result in penalties, in form of taxes and interest charged on the money spent.
While personal training is generally not covered by HSA funds, there are instances where it can be eligible if prescribed by a doctor as part of a treatment plan for a specific medical condition. If you have a health condition that requires exercise or rehabilitation, such as obesity, heart disease, or injury recovery, you may be able to use HSA funds to pay for personal training. Always make sure to get a prescription from your doctor, keep detailed records, and ensure the services are medically necessary to comply with iguidelines.