No, lifestyle benefits cannot be used for medical expenses due to IRS regulations.
Why?
The IRS strictly regulates benefits that allow medical spending due to their tax advantages. Lifestyle benefits do not meet IRS criteria as they are designed to be flexible.
While medical spending is not allowed, many health-supporting or wellbeing purchases may be eligible under your lifestyle benefits. Check your specific benefit's policy to confirm.
Common questions
What benefits can I use for medical expenses?
If available, consider these tax-advantaged options for medical spending:
- Health Savings Account (HSA)
- Health Flexible Spending Account (FSA)
- Limited Purpose Flexible Spending Account (LPFSA)