Another Question on Allowable Expense from FSA

[Guest jgarber]

Can membership fees paid to a YMCA be reimbursed by an FSA plan as "wellness"? Had an employee say that this was suggested by a tax preparer.

[Mary C]

Other than OTC drugs, we will only reimburse expenses if they can otherwise be deducted on your federal tax return. IRS Publication 502 - Medical and Dental Expenses has the following paragraph in the section "What Are Medical Expenses?"

"Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. They do not include expenses that are merely beneficial to general health, such as vitamins or a vaction"

Later in the same publication they list expenses which are not deductible and it includes health club dues or amounts paid to improve one's general health. Since gym memberships do not appear to be deductible we have in the past denied them. The only way we would consider reimbursement is if there is a doctor's letter of medical necessity that lists what condition is being treated and how the gym membership is treatment for that condition.

[Guest Heather Sachs]

I wouldn't reimburse the YMCA fees as wellness through an FSA, The only way I reimburse gym fees are if a doctor has written a letter for the patient to go to a gym for rehabilitative purposes ( Heart attacks, diabetes...) but not for the general care and well being, as stated by regulations.