**Disclaimer: As I’ve said before, I’m not a doctor, nor am I an accredited accountant. I might know a thing or two about Microsoft Excel, but please do not consider anything I am about to say as financial advice. Please consult your own CPA, tax attorney, financial advisor, or anybody with whom you actually have a fiduciary relationship to provide guidance!**
If you contribute to an HSA or an FSA, you can now use those contributions to pay for your membership costs at East Lansing CrossFit!
By doing this, the money that you use to pay for your East Lansing CrossFit membership is pre-tax! So what does this mean for you?
Assume you’re an East Lansing resident in the 22% federal tax bracket for calendar year 2024–meaning that you’re an individual making anywhere from $47,151 to $100,525 per year OR you’re married and your household earns between $94,301 to $201,050–and you’re paying $140/month for a membership. When you contribute to an HSA or FSA, those dollars go into the account before:
- Social Security Taxes (6.20% up to $168,600)
- Medicare Taxes (1.45%)
- Marginal Federal Tax Rate (Assume 22.00%)
- Michigan Income Tax Rate (4.25%)
- East Lansing income tax (1.00%)
Each additional dollar you make is taxed at 34.9%. So, to pay for your $140/month post-tax membership, you need to make $215.05 in pre-tax income!
Conversely, if you’re able to pay for your membership pre-tax, that will reduce your taxable income. So, the $140/month pre-tax effectively becomes $91.14–which is a 34.9% discount!!! It might not sound like much, but over the course of the year, instead of spending $1,680.00 in after-tax dollars, you’ll spend $1,093.68 on your gym membership, saving $568.32!
So How Do You Sign Up?
First, your HSA or FSA will require a “medical letter of necessity”, which is basically a prescription for an East Lansing CrossFit membership from a medical professional. We have teamed up with Truemed who can facilitate this process. You can sign up with Truemed using this link and taking a brief health survey. Don’t worry, sensitive medical information you provide to Truemed stays with Truemed and doesn’t come back to us!
Once you receive your “medical letter of necessity” you may take that to your HSA or FSA and request reimbursements from your account.
We will continue to bill you through Wodify through the credit card you have on file and your HSA or FSA will send you pre-tax reimbursements to offset your costs!
