At first glance, vitamins and supplements seem like natural candidates for FSA-eligibility. They are designed to fill "gaps" in the average diet, and maybe offset minor nutritional deficiencies along the way -- yes, even those related to larger health problems.
But IRS code -- which governs eligibility -- says, specifically in IRS 213(d), that all FSA-eligible expenses must meet the following definition:
"The diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body."
And this is where the debate starts...
"I need my vitamins like others need their medicines!"
Vitamins are perhaps the most-glaring example of a product that can either be medical or for general good health. Daily multivitamins can be primarily used to promote general health and overall well-being, which is why they fall outside the accepted qualifications for eligibility.
Is there a medical basis for needing a multivitamin? Sometimes a multivitamin or any other vitamin or dietary supplement may be FSA eligible if a medical professional specifically recommends it to treat or mitigate a medical condition.
In the past, we've used toothbrushes and floss as a good comparison point for the vitamin debate, and it still holds up. Though we all know proper dental cleaning is necessary for all-around health and wellness, using a toothbrush and floss is typically for general good health and hygiene and not solving a specific medical condition.
"Which vitamins ARE eligible?"
Though multivitamins are likely the most-popular OTC supplement, only two targeted vitamins have achieved FSA- and HSA-eligibility.
Prenatal vitamins meet the requirements for eligibility, since they have shown to prevent birth defects and boost fetal development in ways that most modern diets can't quite seem to achieve.
Likewise, glucosamine/chondroitin supplements are eligible as well as extremely popular because of their proven benefits for treating arthritis.
Because the above exceptions have proven value in treating specific needs and conditions, they can be purchased with tax-free health dollars, and without any written approvals from physicians.
"Are vitamins on the radar for eligibility?"
Congress has recently introduced legislation that would vastly expand the eligibility of vitamins and dietary supplements. Head over to TaxFreeBetter.com today to reach out to your member of Congress and lend your voice to the effort to make vitamins and supplements eligible for the American families who rely on them!
Eligibility with a Letter of Medical Necessity (LMN)
If your physician recommends a certain vitamin or dietary supplement for the treatment of a medical condition, it may be FSA eligible with a letter of medical necessity.
Chances are, the letter will need to be detailed in explaining why these specific products will benefit you, and how long the expected use will be (such as the duration of specific treatment). It's not a guarantee by any means, but a well-presented case made to your benefits administrator can go a long way toward getting the supplements right for you, on a tax-free basis.
Speaking of your benefits administrator, they can probably provide you with the best advice on exactly which vitamins will qualify under what conditions and with how much documentation on hand.
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