ABDL companies that accept FSA

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Slomo said:
Ok then, I'll have to remember that the next time I try to buy bandaids without a doctors note confirming that bleeding is a disease.

Don't be a jerk. You can buy what you want. But in order for diapers to be a covered medical item, it is required they be necessitated by an underlying medical condition. That's the law.
 
klo555 said:
I actually believe the intent of the IRS designation on "diapers" was that you can't buy your child diapers using your FSA account. Diapers for babies/children are treated completely different by almost every entity.

This is possible (and why you should believe those "not legal advice" disclaimers when lawyer folk throw them out there!). I wasn't sure because most places do market their products as adult diapers. Still, if "adult diapers" are legally distinct from "diapers" or say if the adult undergarments are legally classified as "absorbent briefs" that are a different thing from "diapers" then it might be different. If that's the case, the adult incontinence supplies would probably fall under the broader diagnostic device section in 502.
Diagnostic Devices
You can include in medical expenses the cost of devices
used in diagnosing and treating illness and disease.

So, if that's how they're defined, then you can buy as many adult diapers as you want with an FSA, no questions asked. I'll go edit my other post so that anybody who reads it gets pointed to this follow up.

And where we're left with is: I'm not sure, depends how you define your terms. It might be perfectly fine!
 
Wow, this thread snowballed very quickly! Here is my experience on the matter & trust me, I looked into this quite a bit before I decided to use my FSA account to buy diapers. Please note that I am not giving out any legal advice regarding using an FSA account. I am merely sharing my own personal experiences. I am also not condoning that you defraud the US Government.

I have had FSA accounts from two different jobs, facilitated by two different companies (Wage Works & FSA Feds). Both companies clearly stated that diapers for incontinence ARE covered by FSA. I even contacted my HR department and was told that no medical diagnosis or letter of medical necessity was required in order to buy diapers for incontinence. This included diapers for a potty trained child who wet the bed as wetting the bed is a form of incontinence.

I have purchased adult diapers for myself with my FSA account on several occasions over both FSA accounts from two different jobs without issue. I have also purchased overnight diapers for my 9 year old child who wet the bed, without issue. I have purchased adult diapers using an FSA debit card to directly pay for a purchase from XP Medical & Northshore Care. I have also purchased adult diapers on Amazon using my own money & submitted the receipt for reimbursement and was paid back for the purchase.

If for some reason it was determined that an FSA purchase was not a covered expense, the company that facilitates your FSA account is required to send you a written letter stating why they believe it is not covered and give you an opportunity to dispute their decision not to cover the cost. If after they review your disputed claim, they determine that the purchase is not eligible & therefore not covered, they will bill you for that item. As long as you pay for it at that point, you will not be penalized.

The IRS does not care if you use medical diapers or ABDL diapers to manage your incontinence. As long as a merchant is set up to accept FSA card purchases, you are good to go.

Remember, it is your money that has been taken out of your paycheck that funds your FSA account, you are still paying for these purchases, you are just not being taxed on them. Even if you were audited by the IRS, & they determined that your diapers shouldn’t have been covered, the worst that would happen is they would add up the cost of the diapers & bill you for the taxes that you failed to pay on those purchases.

Here is documentation from Wage Works showing that incontinence supplies are covered, & do not require a letter of medical necessity.

http://www.bc.edu/content/dam/files/offices/hr/pdf/HCFSA_ELIGIBLE_EXPENSE.pdf






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I'd bet that if you have any actual need for diapers (stress incontinence for example) most doctors would have no problem writing you a note for IBS or something that gives you a more legally accepted "disease" status/condition for your FSA paperwork.
 
I think the best advice here is as follows:

If you are doing it for fun, and have no real medical need, be careful; do you really want to be in an audit about diapers for fun/fetish?
If you ask can I get a way with this with no need, then you probably should not do it.
If you have a real medical need; incontinence, bedwetting, IBS, or something a doctor would affirm, you probably should be safe (again consult a tax lawyer)
If you are going to go this path and using this thread for advice, contact a real tax lawyer, or an FSA lawyer.

Just try CYA in this case, do you really want to have to deal with your fetish going before a public servants. No public servants are not out to get you, they have a job to do, and they do really care (this coming from an federal employee) And they want to do right by both you and the tax payers.

At this point all this thread is some saying I done it, some saying be careful but non of us are tax lawyer, we did have a lawyer chim in, but he also said talk to a tax lawyer (good advice there) I would hate to see some one decide to go for it for fun and get in trouble (hell I would hate any one to get in trouble with the IRS)
 
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I was making a point, which you just brushed up on. Yes their needs to be a requirement for them, I'm not arguing that. But as already stated by myself and Honeywell6180, they do not need to be for treating a disease. Much like a bandaid only treats minor bleeding, diapers can be used to calm anxiety or for the mental fulfillment of a dl. They are not required by law to have a doctors note any more than bandaids are. Only that there be a reasonable need for them to maintain one's health.
 
Slomo said:
I was making a point, which you just brushed up on. Yes their needs to be a requirement for them, I'm not arguing that. But as already stated by myself and Honeywell6180, they do not need to be for treating a disease. Much like a bandaid only treats minor bleeding, diapers can be used to calm anxiety or for the mental fulfillment of a dl. They are not required by law to have a doctors note any more than bandaids are. Only that there be a reasonable need for them to maintain one's health.

I think that people have a fundamental misunderstanding of how FSAs work. For one, the government is not paying for this stuff, you are. What the government is doing is allowing you to write off purchases related to medical expenses. The money that you put into your FSA belongs to you and if you do not use it by the end of the year then you lose it. This money does not go to the IRS or any other government agency, it goes to your place of employment. Your workplace offers these programs because they cost your employer nothing out of pocket on account they are taking your money to pay for your purchases. Your place of employment actually makes money off of these programs because any money that is not used up by the end of the year goes back to them.

Now when it comes to the end of the year, I get several emails from my FSA provider telling me, "You have a balance in your FSA account, if you do not use it by the end of the year, you will lose that money. Here is a link to our FSA store which includes all of the approved items you can buy (including adult diapers). Please go here and spend your money so you don't lose it." I'm paraphrasing of course but that is the gist of it. I can't tell you how many times that I've bought, condoms, bandaids, a TENS machine, a UV light for treating acne...etc Were those things medically necessary? No, but that doesn't mean that I'm not permitted to purchase them with my FSA or that it is wrong of me to do so. Tax write-offs are available to everyone, whether or not you use them is up to you. If you are audited, I highly doubt that the auditor is going to ask if all of those bandaids were used for cuts (my kids seem to think that they're tattoos) or heaven forbid, if you've ever jacked off in your condom rather than using it to prevent pregnancy or getting an STD.

The main objective of an IRS audit is to make sure that you're paying the correct amount of taxes, not investigate you for fraud. If during an audit the auditor finds that you had taken tax deductions that you were not permitted to take, they will give you the option to square your bill with them. That cost would be the cost of taxes that you failed to pay according to the IRS. What they want to be sure of is that you are not knowingly defrauding the government such as buying adult diapers tax free and then turning around and selling them for a profit.

I use my FSA mainly to pay for copays for Dr's visits and to pay for prescriptions etc but if at the end of the year I have a balance, you can bet I'm going to use that money to buy adult diapers which are a legitimate purchase according to the guidelines of my FSA provider. As I have already shown by providing my FSA account guidelines, a letter of medical necessity is NOT required for purchasing adult diapers which tells me that like bandaids, they do not have to be medically necessary to be an eligible purchase. This includes buying ABDL diapers, if it was against the rules, the IRS would not allow ABDL businesses to accept FSA payments. I do not see this as a grey area and I feel it is clear in the guidelines that the government does not care what you do with them as long as they are for personal use which they are.
 
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The issue with the government is the FSA (and HSA) contributions are pre-tax. The IRS has rules for medical expense deductibility. It's the same for FSA, HSA, and for just taking it as a deduction (subject to the AGI thresholds) on your Itemized Deductions.

The IRS rules for diapers are exactly what I and several others have told you. They must be for incontinence due to a disease or other condition. You can show that by a prescription from a doctor (which is golden) or by other means showing medical necessity. Once you meet that requirement, the IRS doesn't care if you get pink ones or white ones, or if you order them from Bambino or the local hospital medical supply office. Yes, if you sell ANY items you buy with (income) tax-free money like an FSA/HSA or you deducted it on your form, you need to declare that and pay the tax on it (as well as paying the tax on any profit you make).
 
I really should set us an fsa
 
willnotwill said:
The IRS rules for diapers are exactly what I and several others have told you. They must be for incontinence due to a disease or other condition. You can show that by a prescription from a doctor (which is golden) or by other means showing medical necessity.

Yes, if you’re buying diapers out of pocket and then claiming them on your 1040EZ federal income taxes as a medical expense, then you need to show medical necessity. This is because you’ve paid taxes on those purchases & the government is deducting the amount of taxes you’ve paid from your tax bill via itemized deduction. This is the tax code for claiming medical expenses on your federal taxes.

An FSA operates differently, for one, you cannot claim FSA purchases on your federal form 1040EZ itemized deductions. This is because you already received the tax break when they took the money out of your paycheck.

The rules are different because they’re different programs. You do not need a letter of medical necessity to purchase incontinence products with an FSA. I have verified this by speaking to my plan administrator who verified that incontinence products do not need a letter of medical necessity because they are already FSA eligible just like bandaids. I have also included a link which states what I am saying & even defines incontinence as something that can be temporary & can be caused by things as simple as ingesting caffeine.

https://fsastore.com/FSA-Eligibility-List/I/Incontinence-Supplies-E393.aspx

Diapers are not the same as incontinence products, diapers are referring to babies and “diapers and diapers services” are not FSA eligible. I think some of the confusion comes from the fact that diapers & incontinence products are in separate categories. One is not not FSA eligible while the other is.


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Bokeh said:
I think that people have a fundamental misunderstanding of how FSAs work. For one, the government is not paying for this stuff, you are. What the government is doing is allowing you to write off purchases related to medical expenses. The money that you put into your FSA belongs to you and if you do not use it by the end of the year then you lose it. This money does not go to the IRS or any other government agency, it goes to your place of employment. Your workplace offers these programs because they cost your employer nothing out of pocket on account they are taking your money to pay for your purchases. Your place of employment actually makes money off of these programs because any money that is not used up by the end of the year goes back to them.

Now when it comes to the end of the year, I get several emails from my FSA provider telling me, "You have a balance in your FSA account, if you do not use it by the end of the year, you will lose that money. Here is a link to our FSA store which includes all of the approved items you can buy (including adult diapers). Please go here and spend your money so you don't lose it." I'm paraphrasing of course but that is the gist of it. I can't tell you how many times that I've bought, condoms, bandaids, a TENS machine, a UV light for treating acne...etc Were those things medically necessary? No, but that doesn't mean that I'm not permitted to purchase them with my FSA or that it is wrong of me to do so. Tax write-offs are available to everyone, whether or not you use them is up to you. If you are audited, I highly doubt that the auditor is going to ask if all of those bandaids were used for cuts (my kids seem to think that they're tattoos) or heaven forbid, if you've ever jacked off in your condom rather than using it to prevent pregnancy or getting an STD.

The main objective of an IRS audit is to make sure that you're paying the correct amount of taxes, not investigate you for fraud. If during an audit the auditor finds that you had taken tax deductions that you were not permitted to take, they will give you the option to square your bill with them. That cost would be the cost of taxes that you failed to pay according to the IRS. What they want to be sure of is that you are not knowingly defrauding the government such as buying adult diapers tax free and then turning around and selling them for a profit.

I use my FSA mainly to pay for copays for Dr's visits and to pay for prescriptions etc but if at the end of the year I have a balance, you can bet I'm going to use that money to buy adult diapers which are a legitimate purchase according to the guidelines of my FSA provider. As I have already shown by providing my FSA account guidelines, a letter of medical necessity is NOT required for purchasing adult diapers which tells me that like bandaids, they do not have to be medically necessary to be an eligible purchase. This includes buying ABDL diapers, if it was against the rules, the IRS would not allow ABDL businesses to accept FSA payments. I do not see this as a grey area and I feel it is clear in the guidelines that the government does not care what you do with them as long as they are for personal use which they are.

Correct and correct again.

Uh, ok but still correct.

EXACTLY!

And you brought the point home. Thanks!
 
Bokeh said:
Diapers are not the same as incontinence products, diapers are referring to babies and “diapers and diapers services” are not FSA eligible. I think some of the confusion comes from the fact that diapers & incontinence products are in separate categories. One is not not FSA eligible while the other is.

All babies are incontinent by design, and it's temporary. That's not a "medical condition", and doesn't put them at a financial disadvantage vs other babies. Adults that are incontinent have either a mental or physical condition that is causing it, and it's usually a permanent disability, and does place them at a financial disadvantage vs the average person. That's the difference between baby and adult diapers in the eyes of FSA. And so for them, diapers are classified as a "medical device", just the same as a wheelchair or a hearing aid.
 
This topic has come up multiple times on this forum over the years. If you are using an FSA account to pay for adult incontinence products and you do not have a medical diagnosis from your doctor stating your condition and the need for such items, then you are committing fraud. Period. All of the companies that have managed my FSA accounts have asked for a medical note from my doctor.
 
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I've always wondered about this since I found out about FSA's. Though honestly I figure if you see an psychologist who can write prescriptions you can possibly get them to write one if you are "peeshy". I wouldn't be surprised if weighted blankets get FSA so I don't see why it couldn't be the same for diapers if it lessens a person anxiety. I know when I first got adult diapers I felt incredibly better to the point I slept trough the night finally and didn't have nightmares on a constant basis.
 
Spaz said:
This topic has come up multiple times on this forum over the years. If you are using an FSA account to pay for adult incontinence products and you do not have a medical diagnosis from your doctor stating your condition and the need for such items, then you are committing fraud. Period. All of the companies that have managed my FSA accounts have asked for a medical note from my doctor.

Spaz, I'm really curious. Where does it say a person needs a prescription to purchase over the counter items on an fsa account?

From what I'm finding online, incontinence products are automatically eligibe for fsa purchases- without a prescription. Are these sites wrong then?

https://www.walgreens.com/topic/fsa/shop_fsa.jsp
https://fsastore.com/FSA-Eligibility-List.aspx
https://www.irs.gov/newsroom/afford...swers-on-over-the-counter-medicines-and-drugs
(section 5)
 
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Slomo said:
Spaz, I'm really curious. Where does it say a person needs a prescription to purchase over the counter items on an fsa account?

From what I'm finding online, incontinence products are automatically eligibe for fsa purchases- without a prescription. Are these sites wrong then?

https://www.walgreens.com/topic/fsa/shop_fsa.jsp
https://fsastore.com/FSA-Eligibility-List.aspx
https://www.irs.gov/newsroom/afford...swers-on-over-the-counter-medicines-and-drugs
(section 5)

It doesn’t need to be a prescription just a note signed by your doctor stating there is a medical need.
 
Spaz said:
It doesn’t need to be a prescription just a note signed by your doctor stating there is a medical need.

Ah, ok. And medical being either physical or mental. Correct?
 
Slomo said:
Ah, ok. And medical being either physical or mental. Correct?

As long as it comes from your doctor who has diagnosed you with a disease that causes incontinence and feels this will help you manage your condition.
 
Slomo said:
Ah, ok. And medical being either physical or mental. Correct?

You can probably get a note from a psychiatrist but your insurance company may not accept it as a justification for reimbursing you for expenses. You need to read over your insurance policy and see what's covered. They have NO legal requirement to provide any coverage for anything - the level of coverage you get is exclusively determined by your policy with them.

As an example, some insurance companies cover the cost of contraceptives, in part or in whole. Others cover (or partially cover) things like vasectomies. "Mental health" coverage isn't very consistent though from one policy to the next. They may cover the cost of a visit to the psychiatrist but not provide any coverage for "comfort items", even if your shrink deems them necessary to your mental health. Also, diapers may be covered if you have a doctor's note, but not if all you have is a note from your shrink. You have to have a covered item and a covered reason.

Read your policy. If still in doubt, give them a call and ask for clarification.
 
Spaz said:
As long as it comes from your doctor who has diagnosed you with a disease that causes incontinence and feels this will help you manage your condition.

Wait, so you have to be diagnosed with a specific "disase" now too? Gods, first the IRS and FSA lie websites lie to us by saying diapers are automatically covered, and now they conveniently leave out this extra requirement too. What the heck IRS.gov! I'm glad you're here to set them straight.
 
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