Lifestyle Spending Account Eligible Expenses: The Ultimate Guide

In today’s evolving work environment, employers are increasingly offering Lifestyle Spending Accounts (LSAs) as part of their benefits packages. These accounts are designed to promote employee well-being by covering a broad range of personal and wellness-related expensesBut what exactly qualifies as an eligible expense under a Lifestyle Spending Account? This guide breaks it all down for you.

💡 What Is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account is a flexible, employer-funded benefit that reimburses employees for lifestyle-related expenses that support health, wellness, and overall quality of life. Unlike Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), LSAs are taxable and not limited to medical expenses.

✅ Common Eligible LSA Expenses

Here’s a breakdown of the most commonly approved expense categories under Lifestyle Spending Accounts:

🧘 Health & Wellness

• Gym memberships or fitness classes

• Yoga, pilates, or dance studio fees

• Personal training sessions

• Home fitness equipment (e.g., weights, treadmills)

• Wellness apps and subscriptions (e.g., meditation, nutrition)

🍎 Nutrition & Healthy Living

• Weight management programs (e.g., WW, Noom)

• Nutritionist or dietitian consultations

• Meal delivery services with a health focus

• Healthy cooking classes

• Organic food subscriptions or co-op memberships

🧠 Mental Health & Personal Development

• Counseling or life coaching sessions (non-medical)

• Stress management courses

• Self-improvement classes or seminars

• Books and online courses for personal growth

🏡 Work-Life Balance & Comfort

• Ergonomic office furniture (e.g., standing desks, chairs)

• Blue light glasses

• Noise-canceling headphones

• Home internet or utilities stipends (in some plans)

• Co-working space memberships

🛍️ Lifestyle & Hobbies

• Art or music classes

• Sports league fees or recreation passes

• Outdoor gear for hiking or biking

• Hobby-related equipment (e.g., painting supplies, instruments)

• Travel and leisure (if specified by the plan)

👨‍👩‍👧 Family & Childcare Support

• Childcare support or daycare fees

• Elder care expenses

• Parenting classes

• Family fitness or recreational activities

❌ Commonly Ineligible Expenses

LSAs are flexible, but not everything qualifies. Here are some typical exclusions:

• Alcohol, tobacco, or recreational drugs

• Gambling or lottery tickets

• Luxury items not tied to wellness or productivity

• Cosmetic procedures

• Medical treatments already covered by insurance

📝 How Reimbursement Works

1. Submit a claim with a receipt or proof of purchase

2. Get approval based on your employer’s eligible expense policy

3. Receive reimbursement through payroll or a separate system

Note: Always check your specific employer’s LSA policy, as eligible expenses can vary.

📊 Why LSAs Matter

LSAs offer a personalized approach to benefits, allowing employees to invest in what truly matters to them—whether that’s a healthier lifestyle, better mental health, or improved work-from-home productivity. They help create a more engaged, motivated, and balanced workforce.

✅ Final Thoughts

A Lifestyle Spending Account is more than just a perk—it’s a strategic investment in employee well-being. Understanding what qualifies as an eligible expense can help you get the most value from this benefit and enhance your quality of life in ways that go far beyond traditional healthcare.