While your medical insurance covers much of your bodily health, and many companies have Employee Assistance Programs to help you out with mental health, there’s more to your overall wellbeing.
Employers realize this, which is why more and more companies are adding a new acronym to the fold – the LSA, or the Lifestyle Spending Account.
Health Savings Accounts and Flexible Spending Accounts help cover specific IRS-approved expenses such as copays, glasses, or dental care, Lifestyle Spending Accounts have fewer restrictions. They can be used to pay for a broad variety of services and products that promote your own physical, mental, or financial wellness. Below are just a few examples:
- Exercise equipment and nutritional supplements
- Personal trainer
- Entry fees for races or sports leagues; sports lessons
- Spiritual retreats
- State or national park passes
- Camping equipment
- Spa treatments
- Estate planning costs
- Financial planning services
The crucial difference between LSAs and other health-related spending accounts is that expenses submitted for reimbursement through a Lifestyle Spending Account are taxable to you. The reimbursed amount is considered income and is subject to the same taxes as your normal wages. If you’re looking to further your health and wellness, see whether your employer offers an LSA. It can be a helpful tool in taking care of yourself.