Funeral expenses are not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Are Funeral Expenses Not FSA/HSA Eligible?
Funeral expenses—including burial, cremation, memorial services, or related costs—are considered personal expenses rather than medical expenses. Because they are not used to diagnose, treat, or prevent a medical condition, they do not qualify as medical care under IRS Code Section 213(d).
According to IRS Publication 502, funeral and burial expenses are explicitly excluded from the list of eligible medical expenses. These costs are personal in nature and cannot be reimbursed under any tax-advantaged health account.
What’s Not Covered?
Funeral home fees, burial or cremation costs
Memorial services or ceremonies
Headstones, urns, or burial plots
Transportation or administrative expenses related to funeral arrangements
Any costs associated with end-of-life services or preparations
LMN and Exceptions
Funeral expenses are not eligible under any circumstances. A Letter of Medical Necessity (LMN) cannot make these costs reimbursable.
