All-inclusive Lifestyle Spending Account (LSA) eligibility standards
Understand what an All-inclusive Lifestyle Spending Account (LSA) is, how it works, what to include categorically, and the top items to cover - plus compliance protips!
In this piece
Supporting diverse workforce needs
An All-Inclusive Lifestyle Spending Account (LSA) is an employer-sponsored account that employees can use to pay for various lifestyle-related expenses. These LSAs are infinitely customizable spending accounts. Variables such as workforce construct, specific business objectives, employee feedback, or company values can influence prioritization and strategy.
Note: Funds are primarily treated as taxable income.
How an All-inclusive Lifestyle Spending Account works
By consolidating perks into an All-Inclusive LSA, organizations can achieve cost savings and efficiency gains without sacrificing any of their current programs.
- Employers provide a stipend for approved benefit use cases and define eligibility rules to meet business objectives and employee demand.
- Employees have an idyllic experience when choosing and using benefits based on their personal preferences.
Why an All-inclusive Lifestyle Spending Account is important
The All-inclusive LSA empowers HR teams to provide robust benefits despite increasing budget constraints. With high medical renewal costs and sustained inflation, HR professionals and companies are challenged to offer creative, cost-effective, strategic solutions with proven ROI. Unlike other benefits, an All-inclusive LSA benefit doesn't require a new budget and adds value. Companies can simply reallocate funds from previous perks and migrate into a consolidated LSA program. These ultra-customizable spending accounts can cover expansive needs, meaningful on the individual level, at scale.
As a leader in the flexible benefits space, we have the industry's first eligibility standards for customizable spending accounts. Download a copy of the standards set for an All-inclusive Lifestyle Spending Account here or by clicking the image below.
You can access a preview of what you'll find in the All-inclusive LSA eligibility standards below.
Get help building a custom All-inclusive Lifestyle Spending Account
The Forma team can offer guidance - backed by data - as you explore your options. For more information or support, <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a consultation</span> with one of our experts. We’d be happy to help!