Can I use a Lifestyle Spending Account (LSA) for fitness equipment?

A Lifestyle Spending Account (LSA) is a versatile benefit that can help you pay for a wide range of wellness expenses. But can you use it for fitness equipment?

In this article, we'll explore what an LSA covers and whether you can use it to purchase exercise gear.

By the end, you'll have a clear understanding of how to make the most of your LSA funds to support your physical fitness goals.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account is an employer-funded benefit designed to support your overall well-being. LSAs provide financial assistance for expenses that promote physical, mental, and financial health.

What sets LSAs apart is their flexibility. Your employer can customize the account to cover a broad spectrum of eligible expenses. This could include anything from gym memberships and fitness classes to stress-reduction programs, financial planning services, and more.

The specifics of what your LSA will cover depend on how your employer structures the benefit. Some companies offer a generous allowance that can be used across multiple categories. Others may have separate accounts dedicated to distinct areas like fitness, mental health, and professional development. Regardless of the setup, the goal is to provide you with resources to enhance your well-being both in and out of the workplace.

What fitness equipment is eligible under an LSA?

LSAs can cover a wide array of fitness equipment, making it easier for you to stay active and healthy. Here's a breakdown of some common categories and examples of eligible items:

Athletic equipment and accessories

Many LSAs will reimburse you for the purchase of athletic gear such as:

• Running shoes
• Yoga mats
• Resistance bands
• Weightlifting gloves
• Exercise balls
• Jump ropes

These smaller items can add up quickly, so using your LSA funds can help you stock up on essential accessories without breaking the bank.

Exercise machines

If you prefer to work out at home, your LSA may cover larger exercise equipment like:

• Treadmills
• Stationary bikes
• Elliptical machines
• Rowing machines
• Stair climbers

Having access to these machines can make it more convenient to fit in a workout around your busy schedule.

Fitness trackers

Wearable technology has become increasingly popular for monitoring physical activity and encouraging healthy habits. Many LSAs will cover the cost of fitness trackers such as:

• Smartwatches (Apple Watch, Fitbit, Garmin)
• Heart rate monitors
• GPS running watches
• Sleep trackers

These devices can help you stay motivated, track your progress, and provide valuable insights into your overall health.

Home gym essentials

With more people exercising at home, LSAs have expanded to include a variety of equipment for building an effective home gym setup:

• Dumbbells and kettlebells
• Resistance bands and suspension trainers
• Foam rollers and massage balls
• Yoga blocks and straps
• Pull-up bars
• Adjustable weight benches

Remember, the specific items eligible under your LSA will depend on your employer's plan. Some companies may have a broad allowance that covers any fitness-related purchase, while others may have a more limited selection.

Benefits of using an LSA for fitness equipment

Using your LSA to purchase fitness equipment offers several advantages that positively impact your physical and financial well-being, as well as your overall job satisfaction.

Promotes physical wellness and healthy habits

Investing in fitness equipment through your LSA encourages you to prioritize your health and establish a regular exercise routine. Having easy access to workout gear at home or in the office makes it more convenient to fit physical activity into your busy schedule. This, in turn, can lead to improved cardiovascular health, increased energy levels, and better stress management. For employers, promoting physical wellness through LSAs can result in a healthier, more productive workforce with reduced absenteeism and healthcare costs.

Offers flexibility and personalization

One of the most significant benefits of using an LSA for fitness equipment is the ability to choose items that align with your personal preferences and goals. Whether you enjoy yoga, weightlifting, or cardio exercises, you can select the equipment that best suits your needs and interests. This level of flexibility and personalization ensures that you'll be more likely to use the equipment consistently and maintain a long-term commitment to your fitness journey. Employers who offer this type of customizable benefit demonstrate their commitment to supporting the diverse wellness needs of their employees.

Saves money on expensive equipment

Fitness equipment can be costly, especially if you're looking to purchase high-quality items that will last. By using your LSA funds to cover these expenses, you can save a significant amount of money on gear that might otherwise be difficult to afford. This financial support makes it easier for you to invest in your health without straining your personal budget. For employers, offering an LSA for fitness equipment can be a cost-effective way to provide a valuable benefit that helps attract and retain top talent.

Boosts employee morale and engagement

When employers offer an LSA that covers fitness equipment, it sends a clear message that they value their employees' well-being and are willing to invest in their health. This can lead to increased job satisfaction, higher morale, and a stronger sense of loyalty to the company. Employees who feel supported and appreciated are more likely to be engaged in their work and committed to their roles. Additionally, when coworkers use their LSAs to purchase similar fitness equipment, it can foster a sense of camaraderie and encourage healthy competition, further boosting workplace morale and engagement.

How do LSAs work for fitness equipment expenses?

When your employer offers an LSA that covers fitness equipment, you'll need to familiarize yourself with the process of setting up the account and claiming expenses. First, your employer will determine the specific rules and restrictions for your LSA, such as the types of equipment eligible for reimbursement and any spending limits. They may also choose to allocate funds on a monthly, quarterly, or annual basis.

Once your LSA is set up, you can start making qualifying purchases. Keep in mind that your employer may require you to use a specific vendor or provide documentation, such as receipts or invoices, to verify your expenses. When you've made a purchase, you'll typically need to submit a claim through your employer's designated platform or by following their reimbursement process.

It's important to note that LSAs are generally considered taxable income, meaning you'll be responsible for paying taxes on the funds you receive. However, some employers may choose to gross up the benefit to cover the additional tax burden. Be sure to consult with your HR department or benefits provider to understand the specific tax implications of your LSA.

To ensure a smooth reimbursement process, it's crucial to keep accurate records of your fitness equipment purchases. This may include saving receipts, taking photos of the equipment, and keeping track of the date and purpose of each purchase. Having clear documentation will make it easier to substantiate your claims and avoid any potential issues with reimbursement.

When selecting fitness equipment to purchase with your LSA funds, consider your personal preferences, fitness goals, and any spending limits set by your employer. Some companies may cap the amount you can claim for a single item or set a maximum annual allowance. By understanding these limitations, you can make informed decisions about how to allocate your LSA funds effectively.

Are there any limitations or exclusions for fitness equipment under an LSA?

While LSAs offer a great deal of flexibility in terms of eligible fitness equipment, there may be some limitations or exclusions depending on your employer's specific plan. It's important to familiarize yourself with these restrictions to ensure that your purchases qualify for reimbursement.

One common exclusion is clothing and shoes. Many LSAs do not cover the cost of workout apparel, such as sneakers, shorts, or t-shirts, even if they are necessary for your fitness routine. However, some employers may make exceptions for specialized gear, such as cycling shoes or weightlifting gloves.

Another potential limitation is the exclusion of certain luxury or high-end items. For example, your LSA may not cover the purchase of a top-of-the-line treadmill or a designer yoga mat. In these cases, your employer may set a maximum dollar amount for a single item or require you to choose from a pre-approved list of vendors.

Some LSAs may also restrict the purchase of secondhand or used equipment. This policy helps ensure that you are acquiring safe, reliable gear that meets quality standards. If you're considering buying used fitness equipment to save money, check with your HR department or benefits provider first to confirm whether it's an eligible expense.

It's worth noting that the specific limitations and exclusions for fitness equipment under an LSA can vary widely by employer. Some companies may have more stringent rules in place, while others may offer greater flexibility. When in doubt, consult your employee handbook or reach out to your HR representative for clarification on what your particular plan covers.

Best practices for implementing an LSA that covers fitness equipment

When designing an LSA program that includes fitness equipment, there are several best practices to keep in mind. Implementing these strategies can help ensure that your employees get the most value from the benefit while minimizing administrative burdens for your HR team.

Clearly define eligible expenses and spending limits

Establishing clear guidelines around what types of fitness equipment are covered under your LSA is essential. Create a comprehensive list of eligible items, such as treadmills, weights, yoga mats, and fitness trackers. Be sure to specify any exclusions or limitations, such as price caps on individual items or restrictions on purchasing used equipment.

Setting spending limits for fitness equipment expenses helps ensure that your LSA budget is used effectively. Consider implementing an annual or per-purchase maximum to encourage employees to make thoughtful choices about their fitness investments.

Communicate the benefit effectively to employees

To maximize participation in your LSA program, it's important to communicate the details of the benefit clearly and frequently to your employees. Share information about eligible fitness equipment expenses, spending limits, and the reimbursement process through multiple channels, such as employee handbooks, onboarding materials, and regular email reminders.

Consider hosting informational sessions or webinars to educate employees about how to make the most of their LSA funds for fitness equipment. Encourage managers to discuss the benefit during team meetings and performance reviews to ensure that all employees are aware of the opportunity to invest in their physical wellness.

Simplify the claims process and reimbursement

Streamlining the process for submitting claims and receiving reimbursements is key to encouraging employees to use their LSA funds for fitness equipment. Implement a user-friendly platform that allows employees to easily upload receipts, track their spending, and monitor the status of their claims.

Aim to process reimbursements quickly and efficiently to minimize frustration and maintain employee satisfaction with the benefit. Consider partnering with a third-party administrator that specializes in managing LSA programs to reduce the administrative burden on your HR team.

Gather feedback and adjust the program as needed

Regularly solicit feedback from employees about their experience with using the LSA for fitness equipment purchases. Conduct surveys, focus groups, or individual interviews to gather insights into what's working well and what could be improved.

Use this feedback to make data-driven decisions about adjusting your LSA program over time. For example, you may discover that employees would value a wider range of eligible fitness equipment or that they would prefer a different reimbursement cadence. By continuously refining your LSA based on employee input, you can ensure that the benefit remains relevant and effective in supporting your team's physical wellness goals.

Implementing an LSA program that covers fitness equipment can be a powerful way to support employee well-being and drive engagement. By following these best practices and partnering with an experienced LSA administrator, you can create a benefit that truly makes a difference in your employees' lives.

Is an LSA for fitness equipment worth offering?

Offering an LSA that covers fitness equipment can be a smart investment for both employees and employers. For employees, this benefit provides financial support to purchase the tools they need to maintain an active lifestyle. Access to quality fitness equipment can make it easier to establish a consistent workout routine, leading to improved physical health, reduced stress levels, and increased overall well-being.

From an employer's perspective, an LSA for fitness equipment demonstrates a commitment to employee wellness. LSAs and their benefits can help attract top talent and boost retention rates by showing that the company values its employees' health and happiness. Additionally, promoting physical activity through an LSA can lead to a more productive workforce, reduced absenteeism, and lower healthcare costs over time.

Implementing an LSA for fitness equipment does come with some challenges, such as determining eligible expenses, setting appropriate spending limits, and managing the reimbursement process. However, many of these obstacles can be overcome by partnering with an experienced LSA administrator, clearly communicating the benefit to employees, and gathering regular feedback to refine the program.

As more companies recognize the value of supporting employee well-being, LSAs are becoming an increasingly popular benefit. A well-designed LSA that includes fitness equipment can be a powerful tool for promoting a healthy workplace culture and fostering employee loyalty. With the right approach, offering this benefit can pay dividends for both employees and employers in the long run.

Forma makes it easy for you to maximize your Lifestyle Spending Account by streamlining reimbursements and ensuring fitness equipment purchases fit within your employer's plan. With a flexible, user-friendly platform, you can confidently invest in your health while minimizing the hassle of managing expenses. Schedule a consultation with one of our experts today.