Content Table
- What is an HSA and How Does it Work?
- Can You Use HSA/FSA Funds for a Massage Chair?
- Why Use HSA Funds for a Massage Chair?
- How to Get Your Massage Chair Covered by HSA
- FSA vs. HSA: Can FSA Funds Cover Massage Chairs?
Conclusion ReadingTime : 12 Minutes
1- What is an HSA and How Does it Work?
A Health Savings Account (HSA) is a tax-advantaged savings account. It allows you to contribute pre-tax dollars, which can be used for qualified medical expenses.
Key Features:
1. Double Tax Advantage:
a. Pre-tax Contributions: Money you contribute is deducted from your taxable income, saving you about 30-40% in taxes (depending on your tax bracket).
b. Tax-free Growth and Withdrawals: Your HSA funds grow without being subject to capital gains or income taxes. When you withdraw or spend the funds on a qualifiedhealth-related product or service, you don’t pay income or capital gains tax. This can save you an additional 30-40% in taxes.
2. Rollover: HSA funds roll over year to year, making it a great tool for saving for future healthcare costs.
3. Investment Opportunities: You can connect your HSA to investment accounts (such as ETFs, stocks, etc.), allowing the funds to grow over time, making it a powerful long-term savings tool for healthcare costs.
2- Can You Use HSA/FSA Funds for a Massage Chair?
The short answer is yes, but with some conditions. Generally, HSA/FSA funds can only be used for qualified medical expenses as defined by the IRS. According to IRS Publication Number 502, massage chairs are eligible for HSA/FSA funds if they are used for medical purposes.
When Massage Chairs Are Eligible:
1. Medical Necessity: If a healthcare provider (like a doctor or chiropractor) prescribes a massagechair for therapeutic purposes then it qualifies for HSA/FSA reimbursement. If you have any of the symptoms below a massage chair will be considered a medical necessity for you :
a. Musculoskeletal pain, tension, or soreness,
b. Mood disorders such as anxiety,
c. Poor circulation,
d. Inflammation,
e. Headaches,
f. Postural issues, and
g. Fatigue.
2. Letter of Medical Necessity (LMN): To prove the medical necessity, you will need a Letter ofMedical Necessity (LMN) from a healthcare provider. This letter confirms that the massagechair is necessary for the treatment of a specific medical condition that you have.
3- Why Use HSA Funds for a Massage Chair?
Using HSA funds to purchase a massage chair offers several advantages, especially in terms of tax savings. Here’s why it might be a smart choice:
1. Tax Savings: The primary benefit of using HSA funds for a massage chair is the tax savings. HSA contributions are made with pre-tax dollars, reducing your taxable income and saving you 30-40% in taxes. Additionally, when you withdraw funds for qualifiedmedical expenses, you avoid capital gains tax on any investment earnings (typically 15-20%). This means you save on both income and capital gains taxes, resulting in significant overall tax savings.
2. Preserving Out-of-Pocket Expenses: Instead of paying for the massage chair upfront orusing a credit card, using your HSA funds means you’re not adding to your immediate expenses. If you already have funds in your HSA, you can use them to cover the purchase, making it a more manageable option.
3. Long-Term Health Investment: An HSA is a long-term health investment account that grows tax-free. A massage chair is also a long-term health investment that can be purchased with your HSA funds. This means you can use your tax-free HSA investments to buy another tax-free health investment, without paying taxes in between—maximizing your savings and health benefits.
4- How to Get Your Massage Chair Covered by HSA/FSA
We make it easy for you to get your massage chair covered by your HSA/FSA funds. Here’s how our simple process works:
1. Visit Our Store or Call Us: The first step is to visit our store and try out the massage chairs. Once you find the one you like, we’ll help you take the next step.
2. Get Connected with a Licensed Medical Professional: We have an online system to connect you with a licensed medical professional to write the Letter of Medical Necessity (LMN). The process is simple and done from the comfort of your home:
a. Scan your ID to prove your identity.
b. Answer a few quick questions in our online system, such as whether you have symptoms like musculoskeletal pain, tension, anxiety, poor circulation, inflammation,headaches, postural issues, or fatigue. If you answer “yes” to any of these, approval is guaranteed.
3. Make Your Purchase: Once your symptoms are confirmed and approved, you can proceed with your purchase:
a. Use your HSA/FSA debit card to pay directly. Transactions are usually processed within 2 to 24 hours. We will get in touch with you once the transaction is processed, and then everything is set.
b. Alternatively, you can use your personal credit card. If you do, you’ll be reimbursed within 4 to 8 days once you submit the receipt and LMN to your HSA/FSA provider’s online account.
Contact Us at +1 408 889 1188 to learn more.
5- FSA vs. HSA: Can FSA Funds Cover Massage Chairs?
The rules for using FSA funds for a massage chair are similar to those for HSA funds. If a healthcareprovider prescribes the chair for medical purposes, such as back pain or muscle tension, you can use FSA funds.
If you have any of the following symptoms, our online doctor system will generate the Letter of Medical Necessity (LMN) for you, and you can use your FSA card or account for the purchase:
- Musculoskeletal pain, tension, or soreness
- Mood disorders such as anxiety
- Poor circulation
- Inflammation
- Headaches
- Postural issues
- Fatigue
6- Other Ways to Pay for a Massage Chair
The only two ways to pay for your massage chair using your HSA/FSA accounts are:
1. Dedicated Debit Card: Use your HSA/FSA debit card to make the purchase directly. Transactions are typically processed within 2 to 24 hours.
2. Personal Payment and Reimbursement: You can pay using cash, debit card, credit card, or even a check, and then get reimbursed later. Simply submit the receipt and Letter ofMedical Necessity (LMN) to your HSA/FSA provider for reimbursement, which usually takes 4 to 8 days.
These are the accepted methods for using HSA/FSA funds to cover your massage chair purchase.
Conclusion
Using your HSA/FSA funds to purchase a massage chair can be a great way to invest in your health while enjoying significant tax savings. By following the steps outlined—ensuring medical necessity, obtaining a Letter of Medical Necessity, and choosing the right payment method—you can easily cover the cost of a massage chair for therapeutic purposes. Whether using an HSA/FSA debit card or getting reimbursed through other payment methods, we make the process straightforward and hassle-free.