Employee Benefits
Lifestyle Spending Accounts (LSA)
Give employees the freedom to spend on what matters most to them — from fitness and mental wellness to pet care and financial coaching. LSAs are the most flexible voluntary benefit available today.
What Is a Lifestyle Spending Account?
A Lifestyle Spending Account (LSA) is an employer-funded, post-tax benefit that employees can use on a wide range of wellness and lifestyle expenses. Unlike FSAs or HSAs, LSAs are not governed by IRS rules — which means employers have complete flexibility to define what's covered.
LSAs are a powerful tool for attracting and retaining talent. They signal that your organization cares about the whole employee — not just their medical coverage.
How It Works
Employer Sets the Allowance
You decide the annual or monthly dollar amount each employee receives — typically $500 to $2,000 per year.
Employer Defines Eligible Categories
Choose which spending categories are covered — fitness, mental health, childcare, pet care, financial wellness, and more.
Employees Spend & Submit
Employees pay out of pocket and submit receipts, or use a dedicated benefit debit card, to receive reimbursement.
Eagles Administers Everything
Eagles handles eligibility verification, reimbursement processing, reporting, and employee support — end to end.
Popular Eligible Expense Categories
Employers choose which categories to include. Here are the most commonly offered:
Fitness & Exercise
Gym memberships, fitness classes, home equipment, personal training, sports leagues
Mental Health & Mindfulness
Therapy apps, meditation subscriptions, stress management programs, journaling tools
Nutrition & Healthy Eating
Meal kit services, nutrition coaching, healthy grocery delivery, dietitian visits
Financial Wellness
Financial coaching, student loan repayment tools, budgeting apps, credit counseling
Childcare & Family
Daycare, tutoring, summer camps, family counseling, parenting apps
Pet Care
Veterinary visits, pet insurance, grooming, pet sitting, training classes
Education & Development
Online courses, professional certifications, language learning, books and subscriptions
Travel & Commuting
Transit passes, bike-share memberships, ergonomic home office equipment
Why Offer an LSA
The Employer Advantage
Attract Top Talent
LSAs are a differentiator in competitive hiring markets — especially for younger workers who value flexibility over one-size-fits-all benefits.
Boost Retention
Employees who feel their employer invests in their whole life — not just their health insurance — are more engaged and less likely to leave.
No IRS Restrictions
Unlike FSAs and HSAs, LSAs are not subject to IRS contribution limits or eligible expense rules. You define the program.
Simple Administration
Eagles handles all the back-office work — reimbursements, receipts, reporting, and employee questions — so your HR team doesn't have to.
Fully Customizable
Set your own allowance amounts, eligible categories, rollover rules, and plan year structure to fit your workforce and budget.
Supports DEI Goals
LSAs let every employee use benefits in a way that reflects their own life — supporting a more inclusive and equitable benefits strategy.
A Note on Taxes
LSA reimbursements are generally considered taxable income to the employee and are subject to payroll taxes. Eagles provides clear reporting to support accurate W-2 and payroll tax treatment. We recommend consulting your tax advisor to confirm the treatment for your specific plan design.
Ready to launch an LSA program?
Eagles will help you design the right LSA structure for your workforce, handle all administration, and provide the employee support your team deserves. Call us or request a consultation today.