Health Savings and Flexible Spending Accounts: Pay for your Fitness Program with Pre-tax Dollars!
With healthcare costs skyrocketing, more and more individuals are taking advantage of Health Saving’s Accounts (HSA’s) and Flexible Spending Accounts (FSA’s). Without getting into all the nitty-gritty, both HSA’s and FSA’s are accounts that are funded with pre-tax dollars that can be used to pay for IRS approved medical expenses.
HSA’s are used in tandem with qualified high deductible health insurance policies. These accounts can be funded throughout the year and any funds not spent on approved medical expenses are allowed to be saved and used at any time in the future.
FSA’s are employer sponsored plans that require you to estimate your annual medical expenses and contribute that amount to the plan. Unused funds are not allowed to be used in the following year.
Regardless of which plan you use, your fitness program may qualify. You must have a prescription from your physician that describes your medical condition and a recommended course of action that includes the services of a fitness professional. Any questions you may have about eligibility can be fielded by either your plan’s benefits administrator or your tax advisor.
Hopefully, the Healthcare Reform Act will expand the benefits to include healthy people spending money to stay healthy. In the meantime, if you qualify and have access to a HSA or FSA, take advantage of this great money saving benefit.
If you have any questions, feel free to contact me at bruce@fitnessconsultantsinc.com
I agree that the big G should start to incent folks to be more heathy and especially those of us who make it a prioroty since it directly ties to a lower health care costs.