HSA Bank is expanding its lifestyle spending accounts (LSAs) offering to provide funds for wellness expenses not traditionally covered by health insurance or health savings accounts (HSAs).
The employer-funded accounts are designed to help employers attract and retain employees, and may include gym memberships, nutrition counseling, athletic clothing, fitness classes, home fitness equipment, mental health counseling and life planning.
The lifestyle spending accounts can also be used for funds outside of mental, emotional and physical wellbeing, including office supplies and equipment to facilitate hybrid work arrangements, help with financial planning and student loans, aid in adoptions, or support for child and elder care.
The expanded program comes at a time where more employers are embracing holistic wellness strategies that grow beyond financial wellbeing, especially as more plan sponsors look to attract and retain workers. These strategies are even extending to retirement planning.
“We are excited to offer this benefit to employers,” Chad Wilkins, president of HSA Bank, in a press statement. “Lifestyle spending accounts are a great addition to an employers’ benefits lineup and allows them an additional opportunity to play a role in encouraging employees to maintain healthy, active lifestyles, to foster a healthy workplace and to improve relationships with their employees.”
Employers can add money to lifestyle spending accounts on an annual, quarterly, or monthly basis. Any leftover money that an employee does not spend will go back to the employer or can be shaped to allow rollovers to the next time period, according to HSA Bank. Since LSAs are not health savings or flexible savings accounts, they are not monitored by the Internal Revenue Service (IRS) and do not hold government-imposed spending restrictions.
SEE ALSO:
- Top 10 HSA Risks (401ks and HSAs, Better Together, Part Three)
- How HSA Plans are Starting to Resemble 401ks
- HSAs and 401ks—Better Together (Part One)
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
