Can I use a Lifestyle Spending Account (LSA) for online learning subscriptions?

Are you looking to maximize your employee benefits and wondering if you can use a Lifestyle Spending Account (LSA) for online learning subscriptions?

In 2025, LSAs have become an increasingly popular way for employers to support their employees' well-being and professional development.

Let's explore what an LSA is and how it can cover expenses like online learning subscriptions.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account (LSA) is an employer-funded benefit that allows you to spend on a wide range of wellness and lifestyle expenses. Your employer sets aside a specific amount of money for you to use on eligible expenses that promote your physical, mental, and financial well-being.

The beauty of LSAs lies in their customizability. Your employer can tailor the eligible expenses to meet the unique needs and preferences of their workforce. This means that LSAs can cover a broad spectrum of expenses, including online learning subscriptions.

Examples of LSA-eligible expenses

The eligible expenses under an LSA can vary depending on your employer's plan design. However, some common examples include:

• Fitness classes and gym memberships to support your physical health and wellness
• Mental health apps and counseling services to promote your emotional well-being
• Professional development courses and certifications to enhance your skills and career growth
• Home office equipment and ergonomic furniture to create a comfortable and productive remote work environment
• Meal delivery services and healthy snack subscriptions to fuel your body with nutritious options

Can you use an LSA for online learning subscriptions?

Yes, you can use a Lifestyle Spending Account (LSA) for online learning subscriptions if your employer includes education-related expenses in their LSA program. LSAs are employer-funded accounts that allow flexibility in covering wellness and lifestyle expenses, but eligibility depends on your employer's specific plan design. Here's a detailed breakdown:

Key Considerations for LSAs and Online Learning

Employer-Defined Eligibility

Employers customize LSA eligible expenses, which may include educational costs. Common eligible categories related to learning include:

• Professional development courses
• Certification programs
• Online classes or subscriptions (e.g., Coursera, MasterClass)
• Educational materials (books, software)

Example employers might fund:

• $500–$2,000 annually for learning expenses
• Coverage for virtual training, workshops, or degree-related costs

Common LSA Education Use Cases:

• Skill-building: Coding bootcamps, language courses, or industry-specific training
• Academic support: Homeschooling resources, tutoring, or K-12 educational tools
• Career advancement: Certifications (e.g., PMP, AWS) or graduate-level coursework

Tax Implications

LSAs are typically taxable benefits (unlike 529 plans or Section 127 educational assistance). Employers may pair LSAs with tax-advantaged programs (e.g., Section 127) to maximize savings.

How to Confirm Eligibility

Review Your LSA Guidelines‍

Check your employer's list of approved expenses, which often includes:

• Online learning platforms
• Conference fees
• Course materials (e.g., textbooks, software)

Submit Expenses for Reimbursement

‍Save receipts or invoices for subscriptions and use your LSA portal/app to claim reimbursements.

Employer Trends

• 70% of employers are considering LSAs to support diverse needs, including education[5].  
• Top companies allocate LSAs for:  
• Remote work tools (e.g., LinkedIn Learning subscriptions)[6]  
• Professional development (e.g., Udemy courses)[16]  

Limitations

• Exclusions: Employers often exclude expenses covered by tax-advantaged plans (e.g., tuition reimbursement)[14].  
• Funding Caps: Most LSAs provide $500–$2,000 annually, which may limit high-cost subscriptions[4][5].  

For definitive answers, consult your HR team or LSA administrator.

Benefits of using an LSA for online learning

Supports continuous learning and skill development

LSAs empower you to invest in your professional growth by providing funds for online courses, certifications, and educational resources. This allows you to continuously enhance your skills and knowledge, keeping pace with the ever-evolving demands of your industry.

Helps employees stay competitive in their field

In today's fast-paced business landscape, staying competitive requires constant upskilling and reskilling. By using your LSA for online learning, you can acquire new competencies and stay ahead of the curve, positioning yourself as a valuable asset to your organization.

Boosts employee engagement and retention

When employers invest in their employees' learning and development through LSAs, it demonstrates a commitment to their growth and success. This, in turn, fosters a culture of engagement and loyalty, leading to higher retention rates and reduced turnover costs.

Offers tax advantages for employers

While LSAs are typically considered taxable benefits for employees, employers may be able to deduct the expenses as business costs. Additionally, employers can structure their LSA programs to include tax-advantaged educational assistance plans, such as Section 127, to provide further savings for both the company and its employees.

Provides flexibility and personalization in benefits

One of the key advantages of LSAs is their adaptability to individual learning preferences and career goals. Unlike traditional tuition reimbursement programs that may have strict eligibility criteria, LSAs allow you to choose the online learning resources that best align with your professional aspirations and learning style.

How do Lifestyle Spending Accounts work?

Lifestyle Spending Accounts (LSAs) are employer-funded benefits that provide you with a set amount of money to spend on eligible wellness and lifestyle expenses. Here's a breakdown of how LSAs typically work:

1. Employer Sets Parameters: Your employer determines the eligible expenses, contribution amounts, and any other rules or restrictions for the LSA. They may offer a fixed annual allowance or provide funds on a monthly or quarterly basis.
2. Employee Makes Purchases: You can spend your LSA funds on eligible expenses, such as online learning subscriptions, fitness memberships, or mental health apps. It's important to review your employer's guidelines to ensure your purchases qualify for reimbursement.
3. Submitting for Reimbursement: After making a purchase, you'll need to submit a claim for reimbursement. This typically involves providing proof of purchase, such as receipts or invoices, through an online portal or mobile app. Your employer will review the claim and, if approved, reimburse you for the expense.
4. Dedicated Debit Card: Some LSA programs offer a dedicated debit card linked to your account balance. This allows you to pay for eligible expenses directly, eliminating the need for out-of-pocket costs and reimbursement claims.
5. Rollover or Expiration: Depending on your employer's plan design, unused LSA funds may roll over to the next year or expire at the end of the plan year. It's crucial to familiarize yourself with your employer's policies to maximize your benefits and avoid losing any unspent funds.
6. Taxable Income: In most cases, LSA benefits are considered taxable income for employees. This means that the funds you receive through your LSA will be subject to income taxes and reported on your W-2 form. However, some employers may choose to structure their LSA program differently to offer tax advantages.

When it comes to using your LSA for online learning subscriptions, the process remains the same. You can enroll in eligible courses or subscriptions, pay for them using your LSA funds or dedicated debit card, and submit any necessary documentation for reimbursement.

To make the most of your LSA benefits, stay informed about your employer's eligible expense categories, keep track of your account balance, and plan your purchases wisely. If you have any questions about your specific LSA program, don't hesitate to reach out to your HR department or benefits administrator for guidance.

Are online learning subscriptions eligible for LSA reimbursement?

The answer to this question largely depends on your employer's specific LSA plan and the eligible expense categories they have defined. While there is no one-size-fits-all answer, many employers recognize the value of continuous learning and professional development, making online learning subscriptions a common inclusion in LSA programs.

When reviewing your employer's LSA guidelines, look for categories such as "education," "professional development," "training," or "learning and development." These categories often encompass a wide range of learning opportunities, including online courses, certifications, workshops, and subscriptions to educational platforms.

Some popular online learning platforms that may be eligible for LSA reimbursement include:

• Coursera: Offers courses, specializations, and degrees from top universities and companies worldwide.
• Udemy: Provides a vast library of courses on various topics, from business and technology to personal development and creative skills.
• MasterClass: Features exclusive video lessons taught by renowned experts in their fields, covering subjects like writing, cooking, music, and more.
• LinkedIn Learning: Offers a wide selection of courses and learning paths focused on professional skills, software, and business topics.

To confirm whether your desired online learning subscription is eligible for reimbursement, consult your employer's LSA documentation or reach out to your HR team or LSA provider. They can provide definitive answers based on your specific plan's guidelines and any applicable limitations or exclusions.

When submitting a claim for an online learning subscription, ensure you have the necessary documentation, such as receipts or invoices, and provide a clear description of how the subscription aligns with your professional development goals. This will help streamline the reimbursement process and demonstrate the value of your learning investment to your employer.

How to maximize your LSA for online learning

Review your company's LSA guidelines and eligible expenses

Familiarize yourself with your employer's Lifestyle Spending Account (LSA) program and the specific expenses they cover. Pay close attention to the education and professional development categories, as these often include online learning subscriptions. If you have any questions or need clarification, don't hesitate to reach out to your HR department or benefits administrator.

Research and compare online learning platforms

Explore various online learning platforms to find the ones that best align with your professional goals and learning preferences. Consider factors such as course variety, instructor quality, user reviews, and pricing. Some popular options include Coursera , Udemy , MasterClass , and LinkedIn Learning . Take advantage of free trials or sample lessons to get a feel for the platform before committing to a subscription.

Set learning goals aligned with your career development

Identify the skills and knowledge you need to acquire or enhance to advance your career. Create specific, measurable, achievable, relevant, and time-bound (SMART) learning goals that align with your professional aspirations. This will help you choose the most appropriate online courses and make the most of your LSA funds.

Schedule dedicated time for coursework

Treat your online learning as a priority by blocking out dedicated time in your calendar for coursework. Consistency is key to making progress and retaining what you learn. Consider setting aside a specific time each day or week to focus on your online courses, and communicate your learning commitments to your team or manager to ensure they respect your schedule.

Track your expenses and submit for reimbursement promptly

Keep detailed records of your online learning expenses, including receipts, invoices, and course descriptions. Submit your reimbursement claims promptly to avoid missing any deadlines and to ensure a smooth reimbursement process. Use your LSA provider's online portal or mobile app to streamline the submission process and keep track of your account balance.

Provide feedback to your employer on the impact of the benefit

Share your learning achievements and the positive impact of the LSA benefit with your employer. Highlight how the online courses you've taken have enhanced your skills, improved your job performance, and contributed to your professional growth. This feedback helps demonstrate the value of the LSA program and may encourage your employer to expand or refine the eligible expenses to better meet employee needs.

5 tips for implementing an LSA with online learning benefits

Align eligible expenses with company values and objectives

When designing your LSA program, consider how the eligible expenses, such as online learning subscriptions, support your organization's values and objectives. For example, if your company prioritizes innovation and continuous improvement, you may want to focus on courses that teach emerging technologies or industry-specific skills. By aligning your LSA with your company's mission, you demonstrate a commitment to employee growth and organizational success.

Communicate the benefit clearly to employees

Once you've established your LSA program with online learning benefits, it's essential to communicate the details to your employees effectively. Create clear and concise documentation that outlines the eligible expenses, reimbursement process, and any limitations or guidelines. Consider hosting information sessions or webinars to introduce the benefit and answer any questions. Regularly remind employees of the LSA and encourage them to take advantage of the online learning opportunities available.

Curate a list of recommended learning resources

To help employees navigate the vast array of online learning platforms and courses, curate a list of recommended resources that align with your company's needs and objectives. This can include specific courses, learning paths, or subscriptions to platforms like Coursera , Udemy , or LinkedIn Learning . By providing a curated list, you save employees time and ensure they focus on learning opportunities that are most relevant to their roles and the company's goals.

Encourage knowledge-sharing among team members

Maximize the impact of your LSA's online learning benefits by fostering a culture of knowledge-sharing among team members. Encourage employees who have completed courses to share their key takeaways, insights, and how they plan to apply their newfound knowledge in their work. This can be done through team meetings, lunch and learns, or internal blog posts. By promoting knowledge-sharing, you create a learning-focused environment where employees can learn from each other and collectively grow.

Collect data on usage and impact to refine the program

To continually improve your LSA program and ensure it meets the needs of your employees and organization, collect data on usage and impact. Track metrics such as the number of employees utilizing the online learning benefit, the most popular courses or platforms, and the completion rates. Additionally, gather feedback from employees on how the learning experiences have impacted their job performance, career development, and overall satisfaction with the benefit. Use this data to refine your LSA program, adjust eligible expenses, and make informed decisions about future investments in employee learning and development.

What are the best LSA vendors for online learning?

When choosing an LSA vendor to support your online learning goals, consider providers with a wide network of learning partners. This ensures you have access to a diverse range of courses, certifications, and educational resources that align with your professional development needs. Look for vendors that have established partnerships with leading online learning platforms like Coursera , Udemy , and LinkedIn Learning .

The user experience and ease of expense management are also key factors to consider when selecting an LSA vendor. A modern, intuitive platform that simplifies the process of enrolling in courses, tracking your learning progress, and submitting expenses for reimbursement can make a significant difference in your overall satisfaction with the benefit.

Some LSA vendors specialize in education and development benefits, offering a more tailored approach to supporting your learning journey. These providers may offer additional resources, such as personalized learning recommendations, career coaching, or access to exclusive content and events.

Ultimately, the best LSA vendor for your online learning needs will depend on your specific goals, learning preferences, and the level of support you require. Take the time to research and compare different providers, read user reviews, and consult with your HR team or benefits administrator to make an informed decision.

Is an LSA with online learning worth offering?

If you're an employer considering offering an LSA with online learning benefits, it's important to carefully evaluate the potential value and impact on your organization. While providing employees with opportunities for continuous learning and skill development can yield significant benefits, it's essential to approach the decision strategically.

First, weigh the costs and administrative overhead associated with implementing and managing an LSA program against the potential benefits. This includes considering factors such as the LSA vendor fees, internal resources required to administer the benefit, and the anticipated utilization rates among your employees.

To gauge employee interest and identify the most relevant learning topics, conduct a survey or focus group discussions. This will help you understand the specific needs and preferences of your workforce, allowing you to tailor your LSA program accordingly.

When introducing an LSA with online learning benefits, consider starting with a pilot program. This approach enables you to test the waters, gather feedback from participants, and make necessary adjustments before scaling the benefit to your entire organization.

To assess the effectiveness and ROI of your LSA program, establish clear metrics and track key performance indicators. This may include measures such as employee performance, retention rates, and overall satisfaction with the benefit. What is a Lifestyle Spending Account (LSA)? provides a comprehensive overview of LSAs and their potential impact on employee wellness and engagement.

Finally, position your LSA with online learning benefits as part of a holistic employee wellness strategy. By demonstrating your commitment to supporting employees' personal and professional growth, you can foster a culture of learning, boost morale, and attract top talent to your organization.

Forma makes it easy for employers to design flexible Lifestyle Spending Accounts (LSAs) that support online learning and professional development. With a customizable platform and seamless reimbursement process, you can maximize your benefits while investing in skills that advance your career. Schedule a consultation with one of our experts today.