UBCNews - Business - The HSA Treadmill Strategy: How to Save 25-30% on Home Fitness

Episode Date: March 2, 2026

Hey everyone, welcome back to the show. Today we're tackling something that could literally save you hundreds of dollars on your fitness goals. Did you know you might be able to buy a treadmill with pre-tax money from your health savings account? SOLE Fitness City: Salt Lake City Address: 56 Exchange Pl. Website: https://www.soletreadmills.com/

Hey everyone, welcome back to the show. Today we're tackling something that could literally save you hundreds of dollars on your fitness goals. Did you know you might be able to buy a treadmill with pre-tax money from your health savings account? Yeah, it's actually becoming a huge trend in the wellness industry. More and more fitness equipment is now HSA and FSA eligible, which is really changing how people invest in their health at home. So let's break this down for anyone who's not familiar. HSAs and FSAs are accounts where you set aside pre-tax dollars for health care expenses, right?

But traditionally, you couldn't just buy a treadmill or dumbbells with those funds. Exactly. The IRS used to be pretty strict about what counted as a qualified medical expense. Gym equipment was off the table unless a doctor specifically prescribed it for a medical condition. But that's changing now because there's growing recognition that exercise is preventive medicine. Mm-hmm. Interesting. And what kind of savings are we talking about here? On average, people can save about 30% by using pre-tax dollars instead of their regular income. That's the power of not paying taxes on that money first. So if you're in a higher tax bracket, your savings could be even more substantial. That's significant. Now, I've heard there's a specific mechanism that makes this work.

Something called a letter of medical necessity? Yes, the letter of medical necessity. Yes, the letter of medical necessity or LMN is key. This document basically substantiates that the equipment you're buying is for treating, mitigating, or preventing a diagnosed medical condition. It satisfies the IRS requirements to make your purchase a qualified medical expense. And how do people actually get one of these letters? It sounds like it could be, uh, complicated. Well, that's where companies like TrueMed and other platforms come in. They've partnered with fitness equipment retailers to make the process really simple. You complete a quick qualification survey

and a licensed provider reviews it. If you're eligible, they issue the LMN usually within 24 to 48 hours. So it's not like you have to schedule a doctor's appointment or anything like that. The whole thing happens online? Right. It's streamlined. Here's an example. When you're checking out on a partner merchant's website, you select the platform in question as your payment option,

complete the survey, and then use your HSA or FFSA. just like a regular credit card. There's no additional cost to the customer. I see. What if someone doesn't have their HSA card handy at checkout? You can use a regular credit card and you'll get instructions on how to submit for reimbursement from your HSA or FSA administrator later. You'll want to keep your receipt and that letter of medical necessity for documentation. That point about streamlined processes sets up our next piece, the practical differences between these accounts. But first, a quick word from our sponsor.

This episode is brought to you by Soul Fitness. They've partnered with TrueMed to make high-quality treadmills, ellipticals, bikes, and rowers eligible for purchase with your HSA or FSA funds. The process is simple. Select TrueMed at checkout, complete a quick survey, and use your card. Soul Fitness combines durability, comfort, and performance to help you achieve your wellness goals. at home. Learn more at sole treadmills.com. Picking up on streamlined processes, how do the two accounts actually differ for using them with fitness equipment? Great question. HSA funds roll over year to

year, so anything you don't spend stays in your account. FSA funds are often use it or lose it by the end of the plan year, though some employers offer a grace period or allow you to roll over a limited amount. Either way, it's important to check your plan details and use those funds before they expire. So if you've got leftover FSA money at year end, buying fitness equipment could be a smart move to avoid forfeiting those funds. Definitely. I actually had a friend who realized in late December she had about $800 left in her FSA. She ended up getting a home rower and some resistance bans, turned money she would have lost into a home gym setup. That's a perfect example. Now let's zoom out a bit. Why is this trend happening now? What's driving the shift

toward making fitness equipment HSA and FSA eligible? It really comes down to a broader recognition of preventive care. There are literally thousands of studies showing that regular exercise can prevent and even reverse chronic diseases like diabetes, hypertension, and heart disease. Policymakers and health administrators are starting to see fitness as medicine. In other words, exercise is increasingly being treated like an actual prescription. You know, that makes a lot of sense when you think about it. We spend so much on treating disease after it happens. Why not invest in prevention?

Exactly, and this applies to all kinds of equipment. Cardio machines like treadmills help with heart health. Strength equipment supports bone density and metabolism. Even recovery tools like foam rollers and massage guns can address chronic pain or aid in physical therapy. So to everyone listening, if you have an HSA or FSA, this could open up a whole new way to equip your home gym. What types of equipment are most commonly purchased this way? Treadmills are huge because doctors frequently recommend regular cardio for weight management and cardiovascular health. Free weights and resistance bands are popular too, especially for people in physical therapy or those trying to build strength to support joint health. And then you've got recovery gear, massage guns, compression tools that help with muscle pain and stiffness.

I actually started using resistance bands last year for some shoulder issues. and, um, they really do make a difference. Though I have to say, calling them equipment feels generous. They're basically giant rubber bands, right? Ha, yeah, but those giant rubber bands can be surprisingly effective, and way easier on your wallet than some of the bigger machines. Fair point. Have you ever wondered what other wellness products might become HSA eligible in the future?

It feels like we're just scratching the surface here. Oh, absolutely. we're already seeing meal kits, fitness trackers, and even gym memberships become eligible in some cases. The line between health care and wellness is blurring, and I think that's a positive development for consumers. Right, exactly. Now, are there any limitations people should be aware of? Can everyone with an HSA or FSA do this? You do need to have an active HSA or FSA account, of course. If you're unsure whether you have one, check with your employer or insurance company. Also, contribution limits apply.

For 2026, individuals can put up to $4,400 pre-tax into an HSA per year or $8,750 for a family. Those are solid numbers. And I imagine for families, being able to use those funds for home fitness equipment could really encourage everyone to stay active together. For sure, building a home gym removes so many barriers, no commute, no membership fees, no waiting for equipment. You can work out on your schedule, which is huge for busy families.

Right. And the financial aspect is key, too. Using pre-tax dollars effectively gives you a discount equivalent to your tax bracket. That's money you're getting back, that would have otherwise gone to taxes. Yeah, it's one of those rare situations where investing in your health also makes strong financial sense. You're building an asset that pays dividends in better health, energy, and longevity. So as we wrap up, what's the one thing you'd want listeners to take away from this conversation? Check your HSA or FSA balance and consider using those funds for fitness equipment.

Whether it's a treadmill, weights, or recovery tools, you can turn tax-advantaged dollars into long-term health benefits. And remember, FSA funds may expire, so don't leave money on the table. Perfect advice. Thanks so much for breaking this down with us today. This has been really eye-opening. My pleasure. Thanks for having.