Can I use a Lifestyle Spending Account (LSA) for gym memberships?

Are you looking to maximize your employee benefits and wondering if you can use your Lifestyle Spending Account (LSA) for gym memberships? With the growing focus on employee wellness, many employers are offering LSAs as a flexible way to support their staff's health and well-being.

In this article, we'll dive into the details of LSAs and explore how you can potentially use this benefit to cover your fitness expenses, including gym memberships.

So, let's get started and see how you can make the most of your LSA in 2025!

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account (LSA) is an employer-funded benefit that allows you to spend on a variety of wellness-related expenses. Unlike traditional health insurance or Health Savings Accounts (HSAs), LSAs offer more flexibility and customization.

Your employer sets the parameters of the LSA, including the amount of funds available and the categories of eligible expenses. These categories can range from fitness and nutrition to mental health, financial well-being, and beyond.

The beauty of an LSA lies in its adaptability. Your employer can tailor the account to match the unique needs and preferences of their workforce. This means that the eligible expenses under your LSA may differ from those of employees at other companies.

Some common expenses that LSAs cover include gym memberships, fitness classes, wellness apps, stress management programs, and health coaching. However, the specifics depend on how your employer structures the benefit.

One key advantage of LSAs is that they demonstrate your employer's commitment to your overall well-being. By providing funds for wellness activities, your employer is investing in your health and happiness, both in and out of the workplace.

What Expenses are Eligible Under a Lifestyle Spending Account?

The flexibility of LSAs means that a wide range of expenses can potentially be covered. While the specifics vary by employer, here are some common categories that your LSA might include:

Fitness Activities

LSAs often cover expenses related to physical fitness and exercise. This can include gym memberships, allowing you to join a health club or fitness center of your choice. Fitness classes, such as yoga, Pilates, spinning, or dance, may also be eligible. If you enjoy participating in athletic events like marathons or triathlons, your LSA could potentially cover the registration fees.

Wellness Services

Beyond physical fitness, LSAs frequently support overall wellness through various services. Massage therapy, which can help alleviate stress and muscle tension, is a popular option. Acupuncture, a traditional Chinese medicine technique used for pain relief and relaxation, may also be covered. Health coaching, which provides personalized guidance on nutrition, exercise, and lifestyle changes, is another potential expense.

Home Office Equipment

With the rise of remote work, some employers are using LSAs to help employees create ergonomic and comfortable home office setups. This can include the purchase of desks, office chairs, and ergonomic accessories like keyboard trays or monitor stands. These investments not only promote productivity but also support physical well-being by reducing the risk of strain and injury.

Family Care

LSAs can extend beyond the employee to support the well-being of their loved ones. Child care expenses, such as daycare or babysitting, may be eligible, helping working parents balance their professional and family responsibilities. Elder care, including the cost of in-home assistance or adult daycare, can also be covered. Some LSAs even include pet care expenses, recognizing the important role that animal companions play in mental health and happiness.

Financial Wellness

Financial stress can have a significant impact on overall well-being, which is why some LSAs include expenses related to financial health. This can encompass financial planning services, such as consultations with a financial advisor or enrollment in money management courses. Legal services, including the creation of wills or trusts, may also be eligible. Identity theft protection, which helps safeguard your personal and financial information, is another potential expense.

It's important to note that while these categories are common, the specific expenses eligible under your LSA will depend on your employer's plan. They may include all, some, or none of the items mentioned above, and there may be additional categories unique to your company.

To get the most out of your LSA, familiarize yourself with your employer's guidelines and eligible expenses . If you have questions or need clarification, don't hesitate to reach out to your HR department or benefits administrator. They can provide personalized guidance on how to maximize this valuable benefit for your health and happiness.

Can You Use a Lifestyle Spending Account for Gym Memberships?

Yes, gym memberships are a common eligible expense under most Lifestyle Spending Account (LSA) plans. Many employers recognize the value of supporting their employees' physical fitness and include gym memberships as a key component of their LSA offerings.

However, it's important to note that employers have flexibility in determining the specific eligibility rules for their LSA plans. While gym memberships are widely accepted, there may be some variations or limitations depending on your company's policy.

For example, your employer might specify certain types of gyms or fitness centers that are eligible, such as those with a focus on overall health and wellness rather than specialized training facilities. They may also set a maximum dollar amount that can be allocated towards gym memberships within the total LSA funds available.

To ensure that your gym membership is covered under your LSA, it's a good idea to review your employer's guidelines and requirements. You can typically find this information in your benefits documentation or by contacting your HR department.

When using your LSA for gym memberships, you'll likely need to provide documentation, such as receipts or invoices, to substantiate your expenses. This is part of the reimbursement process, which allows your employer to verify that the funds were used for eligible purposes.

Some LSA plans may offer a debit card or other payment method that allows you to pay for your gym membership directly using your LSA funds. In this case, you may not need to submit receipts for reimbursement, as the expense is automatically tracked and categorized.

If you're considering joining a gym or fitness center, it's worth exploring whether your LSA can help offset the cost. By taking advantage of this benefit, you can prioritize your physical health and well-being without adding financial strain.

Remember, the specifics of using your LSA for gym memberships may vary depending on your employer's plan. If you have any questions or need clarification, don't hesitate to reach out to your HR department or benefits administrator. They can provide guidance on how to make the most of this valuable benefit and support your fitness goals.

Benefits of Using an LSA for Gym Memberships

Using your Lifestyle Spending Account (LSA) for gym memberships comes with several advantages that can positively impact your health, finances, and overall well-being.

Saves Money

One of the most significant benefits of using your LSA for gym memberships is the potential cost savings. Since LSA funds are contributed by your employer, you can reduce or eliminate the out-of-pocket expense of maintaining a gym membership. This means more money in your pocket for other priorities, while still prioritizing your physical fitness.

Encourages Healthy Habits

When your employer offers an LSA that covers gym memberships, it sends a clear message that they value your health and well-being. This encouragement can be a powerful motivator to establish and maintain regular exercise habits. With the financial barrier removed, you may find it easier to commit to a fitness routine and make positive lifestyle changes.

Attractive Benefit

For employers, offering an LSA that includes gym memberships can be a valuable tool for attracting and retaining top talent. In today's competitive job market, employees are increasingly looking for comprehensive benefits packages that support their overall well-being. By providing an LSA that covers fitness expenses, employers demonstrate their commitment to employee health and happiness, which can lead to increased job satisfaction and loyalty.

Moreover, when employees prioritize their physical health, it can lead to a range of positive outcomes for both the individual and the organization. Regular exercise has been linked to reduced stress, improved mental clarity, and increased productivity. By investing in employee wellness through an LSA, employers can foster a healthier, happier, and more engaged workforce.

How Do Lifestyle Spending Accounts Work?

Lifestyle Spending Accounts (LSAs) are employer-funded benefits that offer you flexibility in how you allocate and spend your wellness dollars. Your employer determines the eligible expenses, which often include gym memberships, fitness classes, wellness apps, and more.

When setting up an LSA, your employer decides on the contribution amount and frequency. Some companies may offer a lump sum at the beginning of the year, while others may provide funds on a monthly or quarterly basis. The LSA contribution amounts can vary widely, but typically range from $500 to $2,000 per year.

To access your LSA funds, you have two main options. You can pay for eligible expenses out of pocket and then submit a claim for reimbursement, providing necessary documentation like receipts or invoices. Alternatively, some LSA plans offer a debit card that allows you to pay for expenses directly using your account funds.

It's important to note that LSA funds are typically "use it or lose it" within the plan year. This means that any unused funds at the end of the designated period (usually the calendar year) will be forfeited. However, some employers may offer a grace period or the ability to roll over a portion of unused funds to the next year.

To streamline the management of LSAs, many employers partner with third-party platforms that specialize in administering these benefits. These platforms handle the reimbursement process, provide resources to help you understand your benefits, and offer user-friendly portals to track your account balance and spending.

When using your LSA for gym memberships or other fitness expenses, be sure to familiarize yourself with your employer's specific guidelines. Some plans may have requirements around the types of gyms or studios that are eligible, or may set limits on the amount you can allocate towards certain categories.

If you have questions about your LSA or need assistance with the reimbursement process, your HR department or the third-party administrator can provide guidance. They can help you understand your benefits, clarify eligible expenses, and ensure that you're making the most of this valuable wellness resource.

Are There Downsides to Using an LSA for Gym Memberships?

While using your Lifestyle Spending Account (LSA) for gym memberships offers numerous benefits, it's important to be aware of some potential drawbacks.

One consideration is that the funds you receive through an LSA are considered taxable income. This means that the money your employer contributes to your account will be subject to income taxes, which can slightly reduce the overall value of the benefit. However, the tax implications are generally minimal compared to the savings you can achieve by using your LSA to cover fitness expenses.

From an employer perspective, offering an LSA that includes gym memberships requires careful navigation of compliance and tax regulations. Companies must ensure that their LSA plans adhere to all applicable laws and guidelines, which can involve additional administrative work and oversight. However, many employers find that the benefits of supporting employee wellness outweigh the compliance considerations.

Another potential downside is that not all gyms or fitness studios may be eligible under your employer's LSA plan. Some companies may have specific requirements or limitations on the types of facilities that qualify for reimbursement. This could potentially limit your choices if you have a preferred gym or studio that doesn't meet the criteria. However, most LSA plans strive to offer a wide range of eligible options to accommodate diverse employee preferences.

It's worth noting that these potential drawbacks are relatively minor compared to the significant advantages of using your LSA for gym memberships. The ability to prioritize your physical health and well-being with financial support from your employer is a valuable benefit that can have far-reaching positive impacts on your overall quality of life.

If you have any concerns about the specific terms and conditions of your employer's LSA plan, it's always a good idea to reach out to your HR department or benefits administrator for clarification. They can provide personalized guidance on how to maximize this benefit while navigating any potential limitations or considerations.

How Can I Get My Company to Offer an LSA That Covers Gym Memberships?

If your employer doesn't currently offer a Lifestyle Spending Account (LSA) that includes gym memberships, you may be wondering how you can advocate for this valuable benefit. Here are some strategies you can use to make the case for an LSA at your company.

Make the Case

To persuade your employer to offer an LSA, it's helpful to outline the potential benefits for both employees and the organization. Emphasize how an LSA that covers gym memberships can contribute to improved employee well-being, productivity, and retention.

Research has shown that regular exercise can reduce stress, boost mental clarity, and enhance overall health. By investing in employee wellness through an LSA, your company can foster a happier, more engaged workforce. This, in turn, can lead to increased job satisfaction, reduced absenteeism, and lower healthcare costs.

Moreover, offering an LSA with gym memberships can be a powerful tool for attracting and retaining top talent. In today's competitive job market, comprehensive benefits packages that support work-life balance and well-being are increasingly important to job seekers. By providing this perk, your company can differentiate itself and demonstrate its commitment to employee wellness.

Suggest an Administrator

One potential concern your employer may have about implementing an LSA is the administrative burden. Managing reimbursements, tracking expenses, and ensuring compliance with regulations can seem daunting.

To alleviate these concerns, suggest partnering with an experienced LSA platform provider . These third-party administrators specialize in streamlining the management of LSAs, offering user-friendly portals, and handling the reimbursement process. They can help your company navigate the compliance landscape and minimize the administrative workload.

When proposing an LSA administrator, highlight their expertise, track record of success, and ability to integrate with your company's existing benefits infrastructure. By presenting a turnkey solution, you can make the idea of offering an LSA feel more feasible and attractive to your employer.

Start Small

If your company is hesitant to commit to a full-scale LSA program, propose starting with a pilot or a modest initial offering. This approach allows your employer to test the waters and gauge the impact of the benefit without a significant upfront investment.

For example, you could suggest a six-month pilot program with a limited number of participants or a smaller annual contribution amount. During this trial period, gather feedback from employees, track participation rates, and measure any changes in metrics like job satisfaction or productivity.

If the pilot proves successful, use the data to make a case for expanding the LSA program to all employees and potentially increasing the contribution amounts. By starting small and demonstrating the value of the benefit, you can build momentum and support for a more comprehensive LSA offering.

Remember, advocating for an LSA with gym memberships may take time and persistence. Be prepared to have ongoing conversations with your HR department or benefits team, and be open to their feedback and concerns. By presenting a compelling case, suggesting a streamlined administrative solution, and proposing a phased approach, you can increase the likelihood of your company embracing this valuable wellness benefit.

Is a Lifestyle Spending Account for Gym Memberships Worth It?

For employees, an LSA that covers gym memberships can be a game-changer. It allows you to prioritize your physical health and well-being without the added financial burden. By using your LSA funds to pay for your gym membership, you can save money on an expense that might otherwise be a strain on your budget.

Moreover, having access to this benefit can be a powerful motivator to establish and maintain a regular fitness routine. When your employer removes the financial barrier to gym access, you may find it easier to commit to your health goals and make positive lifestyle changes.

From an employer perspective, offering an LSA with gym memberships can significantly enhance the competitiveness of their benefits package. In today's job market, top talent is increasingly looking for perks that support their overall well-being and work-life balance. By providing this benefit, employers demonstrate their commitment to employee health and happiness.

Additionally, LSAs offer employers flexibility and cost control. They can set the contribution amounts and eligibility criteria based on their budget and workforce needs. This allows companies to provide a valuable wellness benefit while managing expenses predictably.

Ultimately, an LSA that includes gym memberships is a win-win for both employees and employers. It empowers individuals to prioritize their physical health while enabling organizations to attract and retain a happier, more productive workforce. If your employer offers this benefit, taking advantage of it can be a smart way to invest in your well-being and make the most of your compensation package.

Forma makes it easy for employers to offer flexible Lifestyle Spending Accounts that cover gym memberships and other wellness expenses. With seamless administration and customizable benefits, Forma helps companies support employee well-being while keeping costs manageable. Schedule a consultation with one of our experts today.