Can I use a Lifestyle Spending Account (LSA) for online fitness classes?
Wondering if online fitness classes are covered by your LSA in 2025? Find out how recent updates affect your eligibility for virtual wellness options.
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If you're looking to improve your physical and mental well-being, you might be considering online fitness classes.
But with the cost of subscriptions and equipment, you may be wondering if there's a way to offset these expenses.
One option to explore is a Lifestyle Spending Account (LSA) offered by your employer.
What are Lifestyle Spending Accounts (LSAs)?
Lifestyle Spending Accounts, or LSAs, are employer-funded accounts designed to support your overall well-being. Unlike traditional benefits like health insurance or retirement plans, LSAs provide you with more flexibility and choice in how you allocate these funds.
Your employer sets aside a specific amount of money in your LSA, which you can then use to pay for a wide variety of wellness-related expenses. The eligible expenses are determined by your employer but often include categories such as physical fitness, mental health, financial well-being, and professional development.
One of the most common questions about LSAs is whether they cover online fitness classes. The good news is that many employers recognize the value of virtual wellness programs and include them as eligible expenses. This means you can potentially use your LSA funds to pay for subscriptions to platforms like Peloton, Fitbit Premium, or Yoga International.
However, it's important to note that each employer defines their own criteria for LSA expenses. Some may have specific guidelines around the types of online fitness programs that qualify, such as requiring live instruction or setting a minimum duration for classes. Others may place caps on the amount you can spend on fitness-related expenses overall.
To get the most out of your LSA, familiarize yourself with your employer's policies and approved expense categories. If you're unsure whether a particular online fitness platform or class is covered, don't hesitate to reach out to your HR or benefits team for clarification.
Eligibility for Online Fitness Classes
Most employers explicitly include online fitness classes in their LSA programs, provided they align with wellness goals. Key details:
- Explicit Coverage: Many LSAs include virtual fitness apps, on-demand classes, and digital subscriptions as eligible expenses.
- Employer Discretion: Employers customize eligible expenses. Confirm your plan’s rules, as some may exclude items like food purchases from nutrition apps.
Examples of Covered Digital Fitness Expenses
Employers often categorize these under physical wellness or holistic well-being:
How to Use Your LSA
- Verify eligibility: Check your employer's LSA guidelines for terms like "virtual fitness" or "digital wellness"[1][6].
- Submit claims: Pay for the service, then upload receipts or invoices through your LSA portal or mobile app[1][4].
- Reimbursement: Funds are typically reimbursed via payroll or direct deposit, depending on your employer's process[4][8].
Tax and Plan Considerations
- Taxable benefit: LSAs are usually post-tax, meaning reimbursements count as taxable income[8].
- Rollover rules: Unused funds may expire or carry over, depending on your employer's policy[6][8].
For clarity, contact your HR or benefits administrator to confirm if your online fitness class provider qualifies under your LSA[1][3].
How to Use Your LSA
To take advantage of your LSA for online fitness classes, follow these simple steps:
1. Verify eligibility
Review your employer's LSA guidelines and look for terms like "virtual fitness," "digital wellness," or "online exercise programs." If you're unsure whether a specific platform or class qualifies, reach out to your HR or benefits team for clarification. They can provide guidance on the types of expenses covered under your plan.
2. Submit claims
Once you've confirmed that your online fitness class is eligible, go ahead and pay for the service. Keep your receipt or invoice, as you'll need to submit this for reimbursement. Most LSA plans have a user-friendly portal or mobile app where you can easily upload your documentation and submit your claim.
3. Reimbursement
After submitting your claim, the funds will typically be reimbursed either through your payroll or via direct deposit. The exact process and timeline may vary depending on your employer's policies. Some companies process reimbursements on a regular schedule, such as every two weeks or once a month, while others may have a more flexible approach.
It's important to note that LSA reimbursements are usually considered taxable income, so keep this in mind when budgeting for your online fitness expenses. Additionally, be aware of any deadlines for submitting claims and using your LSA funds, as some plans have a "use it or lose it" policy where unused balances expire at the end of the plan year.
By understanding your LSA plan's guidelines and following the claim submission process, you can easily incorporate online fitness classes into your wellness routine without breaking the bank. With the convenience and flexibility of virtual workouts, there's never been a better time to prioritize your health and well-being.
Tax and Plan Considerations
When using your LSA for online fitness classes, it's important to understand the tax implications and plan details.
LSAs are typically funded with post-tax dollars, which means that any reimbursements you receive will be considered taxable income[1][2]. This is different from other benefits like health insurance premiums or 401(k) contributions, which are often paid with pre-tax dollars.
As a result, you'll want to factor in the additional taxes when budgeting for your online fitness expenses. Keep in mind that the amount of tax you owe will depend on your individual tax bracket and other factors[3].
Another key consideration is how your employer handles unused LSA funds at the end of the plan year. Some companies have a "use it or lose it" policy, where any remaining balance expires and does not roll over to the next year[4][5]. Others may allow you to carry over a certain amount or even all of your unused funds[6].
To avoid losing out on valuable LSA benefits, familiarize yourself with your employer's rollover rules and plan accordingly. You may want to schedule your online fitness purchases strategically throughout the year to ensure you're maximizing your available funds.
If you have any questions about whether a specific online fitness provider or class qualifies under your LSA, don't hesitate to reach out to your HR or benefits administrator[7]. They can clarify the eligibility requirements and help you make the most of your wellness benefits.
By understanding the tax implications and plan details of your LSA, you can confidently incorporate online fitness classes into your wellness routine while staying within budget and maximizing your benefits.
Forma simplifies Lifestyle Spending Account (LSA) management, making it easy for you to use your benefits for online fitness classes and other wellness expenses. With a seamless platform and clear reimbursement processes, Forma helps you maximize your employer-provided funds without the hassle. Schedule a consultation with one of our experts today.
What do you do if you're unsure?
If you're unsure about LSA eligibility, it's best to consult your benefits administrator or refer to your employer's LSA policy documentation for clarification.
What are LSA benefits for employers?
If you're an employer, there are multiple benefits to offering LSAs to your employees, including:
- Providing flexible support for diverse employee needs
- Increasing employee financial wellness and reducing stress
- Enhancing your total benefits package to attract and retain talent
- Demonstrating commitment to employee work-life balance
- Supporting employees through various life stages and situations
Want to learn more about LSAs? Check out our Lifestyle Spending Accounts (LSAs) benchmark report for 2025.
Get started with Forma today
Looking to offer an LSA as part of your employee benefits package? At Forma, we provide Lifestyle Spending Accounts to companies worldwide.
If you want your business to enhance employee wellbeing through the flexibility of LSAs, fill out the form below, and one of our experts will be in touch.