A Lifestyle Spending Account (LSA) is a relatively new type of employer benefit that provides reimbursements for various wellness or lifestyle expenses.

Unlike HSAs and FSAs, LSAs are funded entirely by the employer – employees typically do not contribute their own money. Also, unlike the other accounts, LSAs are post-tax benefits (not tax-advantaged). The primary purpose of an LSA is to support employees’ overall well-being by covering costs that fall outside traditional health insurance or medical accounts, such as gym memberships, fitness gear, mental health services, and other quality-of-life improvements.