Can I use a Lifestyle Spending Account (LSA) for nutritional counseling?

Are you wondering if you can use your Lifestyle Spending Account (LSA) for nutritional counseling?

In 2025, many employers offer LSAs as part of their benefits package to support employee wellness.

Let's explore what an LSA is and how it can help you access nutritional counseling services.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account (LSA) is an employer-funded account that provides you with funds to spend on eligible health and wellness expenses. Your employer sets aside a specific amount of money for you to use on approved items or services that promote your overall well-being.

LSAs are highly customizable, allowing employers to tailor the eligible expenses to their workforce's unique needs and preferences. This flexibility means that LSAs can cover a wide range of health and wellness categories, from fitness equipment and gym memberships to stress management programs and nutritional counseling.

Employers determine the amount contributed to your LSA, the frequency of contributions (e.g., annually, quarterly, or monthly), and the specific expenses eligible for reimbursement. They may also set limits on the amount you can spend per category or per item. It's important to familiarize yourself with your employer's LSA plan details to understand what expenses qualify and how to access your funds.

How do Lifestyle Spending Accounts work for nutritional counseling?

When using an LSA for nutritional counseling, you'll need to understand the funding and reimbursement process, as well as the tax implications.

Funding and reimbursement

• Employer contributions: Your employer allocates post-tax funds to your LSA, and there are no IRS-imposed limits on the amount they can contribute. This allows for greater flexibility in funding your nutritional counseling expenses.
• Upfront payment and reimbursement: You pay for the nutritional counseling services out-of-pocket and then submit a claim with receipts to your LSA administrator for reimbursement. Be sure to keep detailed records of your expenses to ensure a smooth reimbursement process.

Tax implications

• Taxable income: Reimbursements from your LSA for nutritional counseling are considered taxable income, meaning you'll need to report them on your tax return. This differs from other tax-advantaged accounts like Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs).
• No medical diagnosis required: One advantage of using an LSA for nutritional counseling is that you don't need a medical diagnosis or physician's recommendation to qualify for reimbursement. This means you can seek nutritional advice for general wellness or preventive purposes, not just for treating a specific medical condition.

It's important to note that while LSAs offer more flexibility than FSAs or HSAs, they may not provide the same tax benefits. However, the ability to use LSA funds for a wide range of wellness expenses, including nutritional counseling, can help you prioritize your health and well-being with financial support from your employer.

Benefits of using an LSA for nutritional counseling

Nutritional counseling through an LSA can significantly impact your health and well-being, both personally and professionally. When you have access to expert guidance on making healthier food choices, you can improve your overall health, reduce the risk of chronic diseases, and enhance your energy levels and productivity at work.

One of the key advantages of using an LSA for nutritional counseling is the flexibility and personalization it offers. You can choose the type of counseling that best aligns with your individual needs, preferences, and goals. Whether you're looking to manage a specific health condition, adopt a plant-based diet, or simply improve your eating habits, an LSA allows you to select the approach that works best for you.

From an employer's perspective, offering an LSA with nutritional counseling benefits can be a powerful tool for attracting and retaining top talent. In today's competitive job market, employees increasingly value comprehensive wellness benefits that support their physical, mental, and emotional well-being. By providing access to nutritional counseling through an LSA, companies demonstrate their commitment to employee health and well-being, which can help them stand out as an employer of choice.

Moreover, investing in employee wellness through nutritional counseling can lead to a more engaged, productive, and resilient workforce. When employees feel supported in their health and wellness journey, they are more likely to be satisfied with their jobs, have lower rates of absenteeism, and contribute to a positive company culture.

Key considerations for employers offering nutritional counseling through an LSA

When designing an LSA that includes nutritional counseling, employers should carefully consider the types of services to cover. This may include one-on-one sessions with registered dietitians, group nutrition classes, online courses, or meal planning services. Offering a diverse range of options can help employees find the support that best fits their individual needs and preferences.

Employers may also want to consider pairing their LSA with a tax-advantaged account like an FSA or HSA for additional savings on medical nutrition therapy. While general nutritional counseling through an LSA is taxable, medical nutrition therapy prescribed by a physician for a specific condition may qualify for tax-free reimbursement under an FSA or HSA. Combining these accounts can help employees maximize their benefits and minimize out-of-pocket costs.

When implementing an LSA that covers nutritional counseling, employers should be aware of potential compliance considerations. If the LSA includes expenses that could be considered medical care under IRS rules, such as medical nutrition therapy, the plan may be subject to ERISA and COBRA regulations. This means the employer must follow specific reporting, disclosure, and continuation coverage requirements.

However, standalone wellness expenses like general nutritional counseling typically do not trigger these compliance obligations. Employers should work closely with their benefits consultant and legal counsel to ensure their LSA is structured appropriately and complies with all applicable laws and regulations.

Examples of LSA use cases for nutritional counseling

LSAs can support a wide range of nutritional counseling goals and needs. Some common use cases include:

• Preventive wellness: Covering sessions with registered dietitians to develop healthy eating habits, manage weight, or optimize nutrient intake for overall well-being.
• Chronic condition management: While an LSA cannot replace an FSA or HSA for medically necessary nutrition therapy, it can complement these accounts by providing general nutrition education and support for employees managing conditions like diabetes, heart disease, or digestive disorders.
• Specialty diets: Supporting employees who follow specific dietary patterns, such as vegan, gluten-free, or low-FODMAP diets, by providing access to expert guidance and resources.
• Prenatal and postpartum nutrition: Offering counseling services to support the unique nutritional needs of employees during pregnancy and the postpartum period.
• Sports nutrition: Helping employees who are athletes or fitness enthusiasts optimize their performance and recovery through targeted nutrition strategies.

As employers continue to recognize the importance of holistic well-being, offering nutritional counseling through an LSA can be a valuable addition to their benefits package. By providing employees with the resources and support they need to make informed food choices and develop healthy eating habits, companies can foster a culture of wellness that benefits both individuals and the organization as a whole.

Is nutritional counseling through an LSA worth it?

Nutritional counseling through an LSA can be a valuable benefit for employees looking to improve their health and well-being. Expert guidance on making healthier food choices can lead to better overall health, reduced risk of chronic diseases, and enhanced energy levels and productivity at work.

An LSA offers flexibility and personalization, allowing you to choose the type of counseling that best aligns with your individual needs, preferences, and goals. Whether you want to manage a specific health condition, adopt a plant-based diet, or simply improve your eating habits, an LSA enables you to select the approach that works best for you.

From an employer's perspective, offering nutritional counseling through an LSA can be a powerful tool for attracting and retaining top talent. Comprehensive wellness benefits that support physical, mental, and emotional well-being are increasingly valued by employees in today's competitive job market.

However, employers should weigh the costs and administrative requirements of offering nutritional counseling through an LSA against the potential benefits for employee health and retention. Factors to consider include the types of services to cover, compliance obligations, and how the LSA fits into the overall benefits strategy.

Ultimately, the decision to offer nutritional counseling through an LSA depends on the company's specific goals and resources. A Lifestyle Spending Account (LSA) is a flexible benefits solution that can be tailored to meet the unique needs of both employees and employers, making it an attractive option for companies looking to support employee wellness and drive engagement.

Forma makes it easy for employers to offer flexible benefits like Lifestyle Spending Accounts (LSAs) that cover wellness services, including nutritional counseling. With customizable options and seamless administration, Forma helps companies support employee well-being while simplifying benefit management. Schedule a consultation with one of our experts today.