Lifestyle Spending Account (LSA)
LSAs are employer-funded plans and not regulated by the IRS. That means employers can choose from flexible plan designs and include a broad range of eligible expenses. The plan is considered a business expense to the employer and reimbursements to employees are taxable.
• Why offer an LSA?
Employers consider LSAs for a number of reasons, including:
- Adding a benefit that attracts and retains talent
- Reinforcing company culture of caring for employees’ well-being
- Implementing a benefit tailored to your company’s specific employee needs
- Encouraging employee wellness and healthy lifestyles
- Helping to reduce overall health care costs
• What are examples of eligible expenses?
Some popular examples include:
- Wellness-related expenses
- Fitness, sports and equipment
- Educational expenses
- Financial services
- Children and pet expenses
- Home office equipment and supplies
- Travel, entertainment, vacation expenses
- Additional insurance protection
• What should an employer consider?
- Budget to fund accounts and pay for administration
- Eligible expenses to supplement traditional benefit packages
- Funding frequency
- Reimbursement schedule
- Management of unused funds
- Employee communication
- Claim process
- Plan documentation
If you have questions or need assistance, contact ASI Sales & Marketing at
[email protected]. We can provide assistance with plan design, employee communication, plan documentation and claim processing.