Can I use a Lifestyle Spending Account (LSA) for hiking gear?

Are you wondering if your company's Lifestyle Spending Account (LSA) covers hiking gear?

You're not alone. Many employees are curious about what expenses qualify under their LSA plan.

In this article, we'll explore what an LSA is and how it can support your outdoor adventures, including hiking.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account (LSA) is an employer-funded benefit that reimburses employees for a variety of wellness and lifestyle expenses. Unlike traditional benefits like health insurance or retirement plans, LSAs offer flexibility and personalization.

Employers set aside a specific amount of money for each employee to spend on eligible expenses. The employee pays for the expense upfront and then submits a claim for reimbursement. LSAs are a great way for companies to support their employees' well-being and work-life balance.

LSAs can cover a wide range of expenses, from fitness equipment to personal development courses. The specific eligible expenses vary by employer, but they typically fall into categories like physical health, mental health, financial well-being, and professional growth.

Examples of LSA-eligible expenses

So, what kinds of expenses might qualify under an LSA? Here are a few common examples:

Fitness equipment and gym memberships: Many LSAs cover the cost of home exercise equipment like weights, yoga mats, or treadmills. They may also reimburse for gym memberships, fitness classes, or personal training sessions.

Wellness apps and programs: LSAs often cover the cost of apps or online programs related to meditation, nutrition, sleep, or stress management. This could include subscriptions to apps like Calm or MyFitnessPal.

Hobby classes and personal development: Some LSAs reimburse for classes or workshops that support personal growth and creativity. This might include cooking classes, art lessons, language courses, or professional certification programs.

Can you use an LSA for hiking gear?

The good news is that many LSAs cover outdoor sporting equipment, including gear for hiking and camping. This means you may be able to use your LSA funds to purchase items like hiking boots, backpacks, and trekking poles.

However, it's important to note that eligibility for specific expenses depends on your employer's LSA plan design. Some companies may have more restrictive policies or exclude certain types of gear. It's always a good idea to check with your HR department or benefits provider to confirm what's covered under your specific plan.

Common hiking gear expenses covered by LSAs

So, what types of hiking gear might be eligible for reimbursement under an LSA? Here are some common examples:

Hiking boots and trail running shoes: High-quality footwear is key for comfort and safety on the trail. Many LSAs will reimburse for hiking boots, trail runners, or other outdoor-specific shoes.

Backpacks and hydration packs: A sturdy, comfortable backpack is essential for carrying gear and supplies on a hike. LSAs often cover the cost of backpacks, including specialized hiking packs and hydration packs with built-in water reservoirs.

Trekking poles and gaiters: Trekking poles can provide stability and support on rough terrain, while gaiters help keep debris out of your shoes. These accessories are often eligible for reimbursement under an LSA.

Other hiking-related items that may be covered include:

• Hiking socks and base layers
• Headlamps and portable lanterns
• Water filters and purification systems
• Camping tents and sleeping bags
• Portable stoves and cookware

When in doubt, save your receipts and check with your benefits provider to see what gear qualifies for reimbursement. With a little planning, you can use your LSA to support your outdoor adventures and stay equipped on the trail.

Benefits of using an LSA for hiking gear

Using your LSA to purchase hiking gear can provide several advantages for both your wallet and your well-being. Here's how:

Offset costs of expensive equipment

Quality hiking gear, such as boots and backpacks, often comes with a hefty price tag. A good pair of hiking boots can easily cost $200 or more, while a high-end backpack might set you back $300+. By using your LSA funds to cover these expenses, you can significantly reduce your out-of-pocket costs for pursuing your outdoor hobbies.

Invest in proper gear for safety and comfort

Having the right gear can make all the difference in your hiking experience. Well-fitting hiking boots provide support, stability, and protection against blisters and injuries on the trail. A backpack with a padded hip belt and shoulder straps distributes weight evenly across your body, reducing strain and fatigue. Investing in quality gear with your LSA ensures that you can hike comfortably and safely.

Encourage active lifestyles and employee well-being

Many employers offer LSAs as part of their wellness initiatives to promote healthy habits among their staff. Hiking is an excellent form of cardiovascular exercise that can improve heart health, strengthen muscles, and boost endurance. It's also a great way to reduce stress, clear your mind, and connect with nature. By using your LSA for hiking gear, you're not only investing in your own well-being but also taking advantage of your employer's commitment to supporting an active lifestyle.

How to confirm if hiking gear is eligible for your LSA

Review your plan documents for outdoor sporting equipment

Check your LSA plan documents or benefits portal for terms like "outdoor sporting equipment," "athletic gear," or "recreational activities." Many employers include hiking-related expenses under these categories. Look for specific examples of eligible items, such as hiking boots, backpacks, or trekking poles.

Contact your HR or benefits administrator

If you're unsure whether your LSA covers hiking gear based on the plan documents, reach out to your HR department or benefits administrator. They can clarify your employer's specific policies and provide guidance on what expenses qualify for reimbursement. Come prepared with a list of items you're considering purchasing to get a clear answer.

Submit itemized receipts clearly showing hiking-related purchases

When you're ready to submit a claim for reimbursement, make sure to provide detailed, itemized receipts that clearly show the hiking gear you purchased. Avoid submitting receipts with vague descriptions like "shoes" or "outdoor equipment." Instead, the receipt should specify items like "hiking boots" or "trekking backpack." This will help ensure a smooth approval process and prevent any confusion or delays in receiving your reimbursement.

Are hiking expenses tax-deductible with an LSA?

When you use your LSA funds to purchase hiking gear, it's important to understand the tax implications. In most cases, LSA reimbursements are considered taxable income for employees. This means that any money you receive from your employer to cover hiking expenses will be added to your total taxable income for the year.

However, the specific tax treatment of LSA reimbursements can vary depending on your employer's plan design and the laws in your state. Some companies may choose to structure their LSA program in a way that minimizes the tax burden for employees, while others may not.

To get a clear understanding of how your LSA reimbursements will be taxed, it's best to consult your company's benefits team or a qualified tax advisor. They can provide guidance on the specific tax implications of using your LSA for hiking gear and help you plan accordingly.

Keep in mind that even if your LSA reimbursements are taxable, the benefit of having your employer cover a portion of your hiking expenses can still be significant. By using your LSA funds strategically, you can offset the cost of expensive gear and invest in quality equipment that will support your outdoor adventures for years to come.

What are the best practices for implementing hiking gear in an LSA?

When adding hiking gear to your company's LSA, it's important to set clear guidelines and communicate the benefit effectively to your employees. Here are some best practices to keep in mind:

Clearly define eligible expenses in plan documents

To avoid confusion and ensure smooth reimbursement, specify which hiking-related items qualify under your LSA. This might include boots, backpacks, trekking poles, headlamps, and other essential gear. Provide a detailed list in your plan documents and benefits portal, so employees can easily reference what's covered.

Set reasonable annual spending caps

Determine a realistic budget for hiking gear expenses based on your company's overall LSA funding and goals. A cap of $200-500 per employee per year is a common range, but this may vary depending on your organization's size and resources. Setting a clear limit helps employees plan their purchases and manage expectations.

Communicate LSA options proactively to employees

Don't wait for employees to ask about hiking gear reimbursement – promote it actively as part of your LSA offerings. Highlight outdoor equipment during open enrollment sessions and new hire onboarding, so employees are aware of this benefit from day one.

Share success stories and testimonials from employees who have used their LSA funds for hiking gear. Hearing how a co-worker's new boots or backpack enhanced their outdoor adventures can inspire others to take advantage of the benefit.

You can also provide resources and information to help employees make informed decisions about their hiking gear purchases. Partner with a benefits provider that offers educational materials, product recommendations, and discounts on popular outdoor brands.

Encourage employees to use their LSA for hiking safety and skills courses

In addition to gear, consider expanding your LSA to cover expenses related to hiking safety and skills development. This might include wilderness first aid certification, navigation courses, or guided hiking trips.

Investing in your employees' outdoor education not only helps them stay safe on the trail but also demonstrates your company's commitment to their overall well-being and personal growth.

Seek employee feedback and adjust offerings accordingly

As with any benefit, it's important to gather feedback from your employees on how well your LSA hiking gear offerings are meeting their needs. Conduct surveys or focus groups to understand what types of equipment they're most interested in and any challenges they've faced with the reimbursement process.

Use this feedback to refine your LSA hiking gear policies over time. You may find that employees are looking for more flexibility in the types of gear covered or that they need additional support in navigating the claims submission process.

By continually assessing and adapting your LSA based on employee input, you can create a benefit that truly supports your team's outdoor passions and wellness goals.

Forma makes it easy to maximize your Lifestyle Spending Account (LSA) benefits, including covering eligible hiking gear. With a flexible, user-friendly platform, you can quickly check your employer’s LSA policies, submit claims, and get reimbursed hassle-free. Schedule a consultation with one of our experts today.