Captain Contributor Explains Lifestyle Spending Accounts
A Lifestyle Spending Account, or LSA, is a great way for employers to support their employees. These accounts can help to improve your overall well-being with better health, an easier life, and less stress.
What is an LSA?
When Lifestyle Spending Accounts first started, they mostly gave employees funds to use in the pursuit of fitness. They paid for gym memberships, personal trainers, and things like that. But times and people change, so now they can be used for just about anything. But I'll tell you more about that in just a minute.
How do LSAs work?
An LSA account is Employer funded, meaning that all of the money in the account is provided by your employer – none of it comes out of your paycheck. However, you will get taxed on the funds you use. When you purchase eligible products and services, you’ll submit the receipts to be reimbursed from your LSA account. Some employers may offer an LSA debit card. In that case, you just use the debit card to buy the products and services you need. But when using benefit accounts, always keep your receipts in case you need to provide proof of purchase.
What can I buy with an LSA?
Eligible expenses are chosen by your employer, but they are almost unlimited in what expenses are eligible. I mentioned that LSAs used to be used mostly for fitness endeavors. Now, many employers include financial planning services, mental health care, stress reduction, sports fees, continuing education, cultural and entertainment activities, personal services like grocery delivery, and much more!
Just use your funds on things from your employer’s list that are convenient and helpful for you. And if you have any questions, be sure to ask your HR administrator before buying something you're unsure about.