Lipstick: FSA Eligibility

Lipstick: reimbursement is not eligible with a Flexible Savings Account (FSA)
Lipstick is a cosmetic item and therefore not eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

What is lipstick?

Lipstick is one of the most common cosmetic items on the market today, but it traces its roots back thousands of years to ancient Sumer more than 5,000 years ago, in which both men and women would crush gemstones and use this powder to decorate their lips and the areas around their eyes. For the vast majority of human history, lipsticks and other colorings were made from readily available natural sources such as fruits and plant juices, and enjoyed highs and lows in popularity until the 19th century when commercial lipsticks came back into popular fashion (Bustle).

With the advent of modern manufacturing techniques, low prices and the growing popularity of celebrities and the silver screen, lipstick became extremely popular in the 1920s, when today's swivel-up lipstick tubes were first introduced. Additional innovations by chemists and manufacturers expanded the amount of colors, shades and glosses that were available on the market, and the product's evolution into a fashion mainstay has continued to the modern day where it is considered an indispensable style item.

Why is lipstick not eligible for reimbursement?

Under IRC 213(d)(1), "medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body." This includes medical equipment, supplies and devices." Lipstick is a cosmetic product, and does not directly relate to the diagnosis, cure, mitigation, treatment or prevention of a legitimate medical condition, and therefore would not be eligible for reimbursement with consumer-directed healthcare accounts like FSAs, HSAs, HRAs, DCFSAs or LPFSAs.