Chances are you’re paying more attention to your benefits and wondering how to get the best bang for your buck. You’re likely familiar with health savings and flexible spending accounts, but lifestyle spending accounts (LSAs) are gaining more traction. This employee benefit supports your physical, financial and emotional wellness. An LSA is an employer-funded account that can cover some health and wellness-related expenses outside your group health plan. Employers determine their annual contribution amount and how you can spend your LSA funds. Your employer will also place parameters on acceptable products, services, and expenses.
How Does it Work?
An employer allocates amounts and only pays for what is spent. They deposit money into your LSA to pay for eligible products and services that support your lifestyle
When Can You Use Funds?
You’re typically encouraged to spend LSA funds in the calendar year they are deposited, but some employers may allow you to carry funds over.