Lifestyle Spending Account (LSA)

Lifestyle Spending Account (LSA)

Eligible expenses for LSAs can include a wide range of wellness categories and are completely customizable by the employer. 

Lifestyle Spending Accounts (LSAs) Eligible Expenses and Design

When designing an LSA, prioritize flexibility and customization and decide what your main goals are for your LSA. Is it recruitment and retention? Or better utilization of benefits? Start by conducting surveys or engaging in conversations to understand the unique lifestyle preferences of your workforce. 

Physical Wellness

  • Athletic equipment/accessories
  • Exercise equipment
  • Gym, Health club, and spa memberships
  • Fitness classes

Financial Wellness

  • Student loan reimbursement
  • Home purchase expense reimbursement
  • Financial advisor / planning services

Emotional Wellness

  • Meditation classes
  • Counseling services
  • Leadership retreats

Contribution Rules for Employees

Since LSAs are employer-funded, employees do not make contributions to these accounts. Instead, it’s the employer’s responsibility to contribute to an eligible employee’s LSA.

Save Money on Healthcare Expenses

Now, more than ever, healthcare dollars need to go further. With a Health Reimbursement Account (HRA), they can. HRAs are fully-funded by the employer and designed to help employees pay for medical expenses that may not be covered by insurance.