Lifestyle Spending Account Eligible Expenses: What You Can and Can’t Claim

In today’s evolving work environment, companies are offering more personalized benefits to support employee wellness and satisfaction. One increasingly popular perk is the Lifestyle Spending Account (LSA)—a flexible, employer-funded account designed to cover a wide range of wellness-related expenses. However, knowing what qualifies and what doesn’t can be confusing. This guide will help you understand lifestyle spending account-eligible expenses so that you can make the most of this modern benefit.

What Is a Lifestyle Spending Account?

A Lifestyle Spending Account (LSA) is a taxable benefit provided by employers to support employees’ physical, mental, and financial wellness. Unlike health savings accounts (HSAs) or flexible spending accounts (FSAs), which are regulated and focused on medical care, LSAs are designed to offer greater flexibility by covering a broader range of expenses.

Employers set the rules for their LSAs, including the amount provided and the list of eligible expenses. That’s why understanding your specific company’s policy is key—but many categories are generally accepted across most programs.

Common Lifestyle Spending Account Eligible Expenses

While LSA plans can vary by employer, many programs allow reimbursements for a wide variety of wellness-oriented purchases. Here’s a breakdown of the most commonly approved lifestyle spending account eligible expenses:

1. Fitness & Exercise

• Gym memberships

• Yoga, Pilates, or CrossFit classes

• Personal trainer sessions

• Home exercise equipment (treadmills, weights, bikes)

• Fitness apps and virtual training subscriptions

2. Mental Health & Wellness

• Meditation or mindfulness app subscriptions

• Therapy and counseling (if not covered under a health plan)

• Wellness retreats or workshops

• Stress-reducing activities like massages or spa visits

3. Nutrition & Healthy Living

• Nutritional counseling

• Meal planning or healthy food delivery services

• Weight-loss programs

• Cooking classes focused on healthy eating

4. Childcare & Family Support

• Babysitting services

• Daycare and after-school programs

• Parenting classes

• Elder care assistance

5. Personal Development

• Life coaching

• Career development or leadership workshops

• Non-accredited courses related to wellness or hobbies

6. Financial Wellness

• Budgeting or financial planning services

• Credit counseling

• Tax preparation services

Ineligible Expenses: What You Typically Can’t Claim

Just as it’s important to know what you can claim, it’s equally crucial to know which items don’t qualify under most LSA programs. Some commonly non-reimbursable lifestyle spending account eligible expenses include:

• Medical expenses already covered under insurance or FSAs

• Cosmetic procedures or products

• Luxury or non-essential travel

• Electronics (unless directly related to health/wellness)

• Alcohol or recreational drugs

• Gym clothes or footwear (unless explicitly approved)

• Meals or groceries (unless part of a wellness subscription)

Always double-check with your HR department or benefits administrator before purchasing to ensure it falls under your company’s list of lifestyle spending account eligible expenses.

How to Submit Claims for LSA Reimbursement

Most companies use third-party platforms to manage their LSAs. To get reimbursed:

1. Save your receipts – You’ll need proof of purchase.

2. Check your plan details – Review eligible expenses before submitting.

3. Submit your claim online – Log in to the benefits portal and upload your documentation.

4. Wait for approval – If approved, funds are typically reimbursed via direct deposit.

Final Thoughts

Lifestyle Spending Accounts are a valuable tool to help you invest in your well-being. By understanding lifestyle spending account eligible expenses, you can use this benefit strategically and avoid unnecessary out-of-pocket costs. Always review your employer’s specific policy, keep your receipts, and stay informed about what counts. With a little planning, your LSA can go a long way in enhancing your health, productivity, and overall lifestyle.