Lifestyle Spending Account (LSAs)

What is a lifestyle spending account?

Not every employee has the same lifestyle needs. The Acrisure Lifestyle Spending Account gives you the flexibility to allow employees to spend benefit dollars on the things that matter most to them. From physical and mental health needs, to professional and educational development, to travel and entertainment, you have complete freedom to determine how your employees are able to spend their lifestyle spending account dollars.

How does it work?

• Determine your budget. Decide how much you would like to spend per employee as well as how you intend to fund the accounts – the full amount up front or smaller amounts spread throughout the plan year.

• Identify spending categories. Create your own unique program parameters – restrict the use of funds to certain types of purchases or leave it wide open. The choice is yours!

• Communicate the benefit. Make sure your employees understand how lifestyle spending accounts work and how to use their account funds.

Similar to health savings accounts (HSAs) and flexible spending accounts (FSAs), lifestyle spending accounts often have funds that are meant to be used for specific types of purchases. However, there are differences.

No tax benefit.

Unlike HSAs and FSAs, lifestyle spending accounts do not offer any tax advantages. You fund the accounts, and the funds are considered taxable income for your employees.

You control how funds are spent.

With HSAs and FSAs, there are restrictions on the use of funds, but these are typically set by the IRS. With lifestyle spending accounts, you create the program parameters. You can restrict the use of funds to certain types of purchases or leave it wide open. The choice is yours!