Employers looking to offer something new should give LSAs a consideration. The flexibility of LSAs creates desirability to have them as benefit. The IRS has a broad list of expenses related to medical, dental, and vision care that it considers as qualified expenses for. Other employees might want to purchase vitamins and supplements from GNC or a similar product provider. Alternatively, they may choose to exercise at home and purchase a Peloton bike or treadmill with their LSA funds. Employees can use their LSA funds to pay for a membership at any gym or fitness center of their choosing. Use it if enrolled in an HSA For eligible dental and vision expenses For medical and prescription drug expenses after medical plan deductible is met. Consider the Health & Fitness LSA as an example. Can I use HSA to pay for yoga Augby Sandra Hearth Spread the love Yoga is eligible for reimbursement with a Letter of Medical Necessity (LMN) with flexible spending accounts (FSA), health savings accounts (HSA), and health reimbursement accounts (HRA). Employees generally love that they have flexibility and choice on how they spend the money in their LSA. This can be a great way to work the system and get credit card perks as long as the medical expense was incurred while the HSA was open. LSAs are popular amongst employees, and they’re usually perceived as a “cool” benefit. HSA owners can pay for their qualified medical expenses with a credit card that has cash back points, airline miles, or other perks, and then reimburse themselves from their HSA for those expenses. That means the reimbursements to employees are included in their gross income and subject to taxes however, the reimbursements can be written off as a business expense by the employer. LSAs do not currently have any preferential tax treatment under the Internal Revenue Code or state tax laws. ![]() Entertainment LSAs – These could reimburse expenses such as movie theatre tickets, sporting event tickets, concert tickets, museum entry fees, or art and music lessons.Personal Care LSAs – These could reimburse expenses such as spa services, salon services, foot and nail care, or meditation classes.Health & Fitness LSAs – These could reimburse expenses such as gym memberships, yoga classes, home exercise equipment, personal training, or nutritional supplements.LSAs often promote wellness and wellbeing, but the sky is the limit as to what can be reimbursed, and every LSA is unique and customizable. Employees generally have options on how to use the funds according to their lifestyle preferences. Employers define what expenses are eligible, which employees are eligible to participate in the plan, and the maximum reimbursement limits. LSAs are employer funded programs that reimburse employees for certain personal expenses. There could be a slew of other names, but we refer to them as LSAs. ![]() LSAs are sometimes referred to by other names, such as Personal Spending Accounts or some even refer to them simply as Wellness Programs. Lifestyle Spending Accounts (LSAs) have become one of the hottest new employee benefit programs.
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