WEAR IT Act

The WEAR IT Act would add wearable devices to the list of qualified medical expenses for tax-advantaged accounts. Specifically, it allows amounts paid for wearable devices to be treated as medical care (up to a $375 per taxable-year cap) when paid from: - Health Savings Accounts (HSAs) - Archer Medical Savings Accounts (Archer MSAs) - Health Flexible Spending Arrangements (Health FSAs) - Health Reimbursement Arrangements (HRAs) A wearable device is broadly defined as a device or software (including subscriptions) worn on the body or used mainly with a device worn on the body, and that either collects and analyzes physiological data for health-related diagnoses or treatment, or assists in diagnosis or provides treatment for health conditions. The changes apply to amounts paid after December 31, 2025 (for HSAs and MSAs) and to expenses incurred after December 31, 2025 (for FSAs and HRAs). In short, starting in 2026, individuals can use tax-advantaged funds to buy or reimburse wearables within the $375/year limit, if the wearables meet the defined purposes.