Compliance & standards

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!

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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.

Know what an All-inclusive Lifestyle Spending Account is, how the benefit works, and why it's important.
View a list of the top types of Lifestyle Spending Accounts and the percentage of Forma customers offering the option. These accounts can be bubbled up into an All-inclusive LSA or function as individual LSA programs.
Get a snapshot of when and why to offer an All-inclusive LSA vs. a stand-alone LSA program.

Get a breakdown of the trending categories and items offered in an All-inclusive Lifestyle Spending Account.
Access benchmark data alongside the many options you may want to include in an All-inclusive LSA.
See how to pair Pre-tax Accounts and what not to include to remain compliant with your All-inclusive LSA program.
Use benchmark data to make informed decisions when considering an All-inclusive Lifestyle Spending Account program.

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!  

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