If you’ve heard the term “Lifestyle Spending Account” or “LSA” tossed around at work or in conversations about benefits, you’re not alone. LSAs are growing in popularity as employers look for creative ways to support their employees’ overall wellbeing beyond traditional healthcare benefits.

A lifestyle spending account (LSA) is an employer-funded, post-tax benefit account designed to support your physical, mental, emotional, or financial health. Unlike tax-advantaged accounts such as FSAs or HSAs, LSAs offer greater flexibility in what expenses they can cover. This makes them a popular choice for companies focused on employee wellness and work-life balance.

Because LSAs are customizable, what’s covered will depend on your specific employer’s plan. That said, most LSAs support a wide range of lifestyle-related expenses that contribute to your overall wellbeing.

Here’s a general idea of how an LSA typically functions:

• Employer-funded: Your employer sets aside a specific dollar amount for you to use throughout the year.
• Debit card or reimbursement-based: Your employer may provide you with an LSA debit card that comes pre-loaded with an allotted amount. This simplifies the process for you, and gives your employer better insight into the success of the LSA program. Alternately, your employer can have you pay for eligible items or services out-of-pocket, then submit receipts to be reimbursed from your account.
• Post-tax: Funds are taxed before they’re distributed, so LSAs don’t face the same IRS restrictions as FSAs or HSAs.
• Use it or lose it: Many LSA plans operate on a calendar year, and unused funds may not roll over — though this depends on your employer’s rules.

Because LSAs are flexible by design, they can cover a broad array of expenses. Here are some common examples:

Physical wellness

• Gym memberships
• Fitness equipment
• Personal training
• Yoga, pilates, or martial arts classes
• Nutritional counseling
• Healthy meals

Mental and emotional wellness

• Therapy or counseling sessions
• Meditation apps
• Mindfulness retreats
• Life coaching

Financial wellness

• Financial planning services
• Budget or debt counseling tools
• Student loan repayment assistance

Family and lifestyle support

• Childcare or elder care services
• Pet care or pet insurance
• Home cleaning services
• Continuing education or professional development

Remember, each employer defines their own eligible expenses, so always check your plan documents for details.

Companies are increasingly recognizing that wellness extends far beyond just physical health. As a result, lifestyle spending accounts have emerged as a way to support the whole employee. By offering LSAs, employers can promote a culture of wellness and work-life balance, while also meeting the diverse needs and interests of their workforce.

These accounts serve as a powerful tool for attracting and retaining top talent, offering a flexible benefit that feels both personal and valuable. Perhaps most importantly, LSAs allow employers to proactively address the mental, emotional, and financial dimensions of employee wellbeing — helping people thrive both inside and outside the workplace.