Lifestyle Spending Accounts (LSAs)

An LSA is a customizable benefit account designed to help employees cover expenses not typically addressed by traditional benefit plans. LSAs can be tailored to fit your company's wellness goals.

Employers can customize an expense list that matches their wellness goals and the needs of their employees. Common expenses often covered by LSAs include physical/mental wellness, financial wellness, remote work funds, work/life balance funds and emergency funds. Examples include gym memberships, non-medical counseling, financial planning, computers, cultural events and medical travel funds.

Yes, LSA benefits are typically funded with post-tax dollars, which means the funds become taxable income to employees.

The average employer contribution is $750 for single employees and $1,500 for families. The right amount will depend on the activities you're trying to promote and your budget.

When setting up an LSA, consider factors such as budget, eligibility, objectives and plan rules. After determining these factors, sign a service agreement, complete setup documents and communicate the new benefit to your employees.

While you don’t have to, many employers choose to do this because it makes it easier for the employer to manage their plans and employees to manage their accounts. Plus, many administrators offer package pricing that can help you save money on the benefit plans you offer. Talk to Associated Benefits Connection sales team member about the pricing we can offer.