Health savings accounts and flexible spending accounts now cover Fitbit Air purchases, the latest fitness tracker to qualify for pre-tax health spending. The move lets you buy the device using untaxed dollars from your HSA or FSA instead of after-tax income.
HSAs and FSAs differ in key ways. HSAs pair with high-deductible health insurance plans and roll over unused funds yearly, making them longer-term savings vehicles. FSAs tie to your employer and reset annually, so unspent money typically disappears at year-end. Both let you set aside pre-tax income for qualified medical expenses.
Fitbit Air now counts as a qualified purchase for both accounts. If you contribute to an HSA or FSA, buying this tracker costs less than paying with regular salary. Someone in the 24 percent tax bracket saves roughly $24 on every $100 spent by using HSA/FSA funds instead of after-tax dollars.
The IRS periodically expands the list of health-related items eligible for HSA and FSA purchases. Fitness trackers weren't always covered, but regulators increasingly recognize wearables as legitimate health-monitoring tools. Fitbit Air joins other health devices like blood pressure monitors, thermometers, and pulse oximeters on the approved list.
Check your specific plan before buying. Not all HSAs and FSAs cover the same products, and some insurance companies restrict which retailers you can use. Your plan administrator determines what's eligible, so confirm coverage through your employer's benefits portal or call your plan's customer service line.
The Fitbit Air tracks steps, heart rate, sleep, and activity levels. Having it on the approved list makes sense if you're already paying into an HSA or FSA for other health expenses. You'll reduce your overall healthcare spending while gaining a device that monitors daily wellness.
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