A lifestyle spending account (LSA) is a taxable and employer-owned benefit that allows employees to spend funds on a variety of expenses such as wellness programs, home office equipment, and much more.
Eligibility
For you to be eligible, your employer must offer you an LSA. Yes, it's that simple! You are not required to have health insurance coverage to participate in a LSA.
Minimums or limits
Only employers can contribute to an LSA, and there are no annual contribution minimums or limits to said employer contributions. Generally, contributions range from $500 to $2,000.
Eligible & ineligible expenses
Lifestyle spending accounts offer great flexibility in their plan design, allowing third-party administrators (TPAs) and employers to design unique LSA programs to address different employee needs. For this reason, each LSA plan is unique, and you should review your plan documents to best understand your LSA's eligible expenses.
Here are some common examples of LSA plans and their eligible expenses.
Family Building LSA: Adoption and surrogacy expenses
Wellness LSA: Gym memberships and home gym equipment expenses
Remote Work LSA: Office equipment and supplies, co-working space, and coffee shop expenses
The examples above are only for illustrative purposes.
Important: Refer to your plan details for information on what your employer deems as eligible spending.