IRS Clarifies Wearable Health Device Eligibility for Medical Expense Reimbursement

The IRS has released new guidance detailing when wearable health-tracking devices, like smartwatches or rings, can qualify as reimbursable medical expenses. Eligibility for health FSAs, HSAs, or HRAs depends on the device's specific functions and the reason for its purchase, requiring a case-by-case analysis. This clarification impacts individuals and employers regarding tax-advantaged health spending.