Can I use a Lifestyle Spending Account (LSA) for swimming lessons?

Are you wondering if you can use your Lifestyle Spending Account (LSA) to pay for swimming lessons?

LSAs are a flexible benefit that can cover a wide range of wellness and lifestyle expenses, but the specific eligible expenses depend on your employer's plan.

In this article, we'll explain what LSAs are, how they work, and whether swimming lessons are typically covered.

What are Lifestyle Spending Accounts (LSAs)?

Lifestyle Spending Accounts are employer-funded accounts that reimburse you for eligible wellness and lifestyle expenses. Your employer sets aside a certain amount of money each year for you to spend on approved expenses that promote your overall well-being.

LSAs provide flexibility and choice in your benefits package. Instead of being limited to traditional benefits like health insurance and retirement plans, you can use your LSA funds to pay for expenses that align with your personal wellness goals and interests.

Examples of LSA-eligible expenses

The eligible expenses for LSAs vary by employer, but they often include:

Fitness memberships and classesExercise equipmentPersonal training sessions Nutritional counselingStress management programsFinancial planning servicesProfessional development coursesChildcare expensesHome office equipment

Some employers offer broad categories of eligible expenses, while others provide a specific list of approved items. It's important to check your employer's LSA plan documents to see what expenses are covered.

How LSAs differ from HSAs and FSAs

LSAs are sometimes confused with Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), but there are some key differences.

HSAs and FSAs are also employer-sponsored accounts, but they are specifically designed to cover medical expenses. The funds in these accounts can only be used for qualifying healthcare costs, such as doctor visits, prescription drugs, and medical supplies.

In contrast, LSAs cover a much wider range of expenses beyond just medical costs. They are designed to support your overall well-being across many aspects of your life.

Another difference is that HSAs and FSAs offer tax advantages, while LSAs are taxed as income. However, LSAs often have fewer restrictions and more flexibility in how you can use the funds.

Swimming Lessons and LSA Eligibility

Swimming lessons can be eligible for reimbursement through your Lifestyle Spending Account (LSA) if your employer includes them in their LSA program. Here's what you need to know:

Employer Discretion

LSAs are fully customizable employer-funded accounts, and swimming lessons qualify only if explicitly included in your company's plan. Employers typically categorize swimming lessons under physical wellness or fitness activities.

Common LSA Categories for Swimming Lessons

Most employers classify swimming lessons alongside gym memberships, fitness classes, and sports equipment in the Physical Wellness category. Some plans cover swim passes or pool memberships as part of broader wellness benefits under Recreational Passes.

Documentation Requirements

To get reimbursed for swimming lessons, submit receipts showing the date, provider name, amount paid, and a description of the service. Your employer may require proof of enrollment or completion for the lessons.

Tax Implications

Keep in mind that LSA reimbursements are taxable income, unlike tax-advantaged accounts like HSAs or FSAs. Swimming lessons reimbursed through an LSA will appear on your W-2 as taxable earnings.

Examples of LSA Programs That Cover Swimming Lessons

Dartmouth College's LSA explicitly lists "sports lessons (i.e., swim, golf, tennis)" as eligible. Ouray County's LSA includes "fitness classes and lessons" in its eligible expenses. Lockton Employee Connects covers "lessons (golf, swimming, tennis, dance, etc.)" under physical wellness.

Limitations and Exceptions

Some programs, like the Levittown Swimming Association, require participants to pass a swim test before enrolling in advanced classes. LSAs generally exclude medical expenses covered by insurance or FSAs/HSAs. For example, therapeutic swimming pools require a medical letter for FSA/HSA eligibility but not for LSAs.

How to Confirm Eligibility

Review your employer's LSA documentation for a list of approved expenses. Contact HR or benefits administrators to clarify if swimming lessons qualify. Verify reimbursement limits - for example, Ohio State's LSA caps reimbursements at $125/quarter.

Benefits of Using LSAs for Swimming Lessons

Using your Lifestyle Spending Account (LSA) to pay for swimming lessons offers several advantages for both you and your employer.

Promotes Physical Fitness and Well-being

Swimming is a low-impact, full-body workout that improves cardiovascular health, builds muscle strength, and increases flexibility. It's suitable for people of all ages and fitness levels, making it an inclusive activity for diverse workforces.

Regular swimming can also reduce stress, improve mental well-being, and boost overall quality of life. HSA Store notes that while swimming lessons are not HSA-eligible, they may qualify for LSA reimbursement under certain plans.

Supports Skill Development and Water Safety

Swimming lessons teach valuable skills that can prevent drowning accidents and promote water safety. Investing in swimming education through your LSA can give you peace of mind, especially if you have children or frequently engage in water activities.

Developing strong swimming techniques can also open up opportunities for you to enjoy other water sports, such as surfing, kayaking, or snorkeling, further enhancing your overall well-being and work-life balance.

Offers Tax Advantages for Employers

Employers who offer LSAs with swimming lessons as an eligible expense may qualify for tax deductions. These deductions can help offset the cost of providing this benefit to employees.

Additionally, employers can often exclude the value of LSA benefits from employees' taxable income, up to certain limits set by the IRS. This can result in tax savings for both the company and its employees.

Attracts and Retains Top Talent

In today's competitive job market, a comprehensive benefits package that includes unique perks like swimming lessons can set an employer apart. LSAs demonstrate a company's commitment to employee well-being and work-life balance.

Offering swimming lessons through an LSA can attract health-conscious candidates who value active lifestyles and preventive wellness. It can also improve employee satisfaction and retention by providing a benefit that supports their personal goals and interests.

How to Determine if Your LSA Covers Swimming Lessons

To find out if your Lifestyle Spending Account (LSA) reimburses swimming lessons, take these steps:

Review Your Employer's LSA Documentation

Your benefits handbook or LSA plan documents should include a list of approved expenses. Look for categories like "fitness activities," "wellness classes," or "sports lessons." If swimming lessons are explicitly mentioned, you can feel confident about submitting a claim.

If the list of eligible expenses is vague or broad, such as "physical fitness programs," you may need to confirm with your employer if swimming lessons qualify.

Contact Your HR or Benefits Administrator

Your HR team or benefits administrator can clarify whether swimming lessons are an eligible expense under your company's LSA plan. They can provide guidance on any specific requirements or limitations for reimbursement.

Prepare questions in advance, such as:

• Are swimming lessons covered under our LSA plan?
• What documentation is needed to submit a claim for swimming lessons?
• Is there a maximum reimbursement amount for this expense?

Understand Reimbursement Limits and Procedures

Before enrolling in swimming lessons, verify any spending caps, deadlines, or specific reimbursement processes for LSA claims. Some key factors to consider:

Reimbursement Limits: Your LSA may have an annual or per-claim reimbursement limit for fitness expenses like swimming lessons. Knowing these caps can help you plan your spending and enrollment in classes.

Claim Deadlines: Be aware of any deadlines for submitting LSA claims. Some plans require claims to be filed within a certain timeframe after the expense is incurred.

Required Documentation: Gather any necessary paperwork for reimbursement, such as receipts, enrollment confirmations, or proof of payment. Your HR team can advise you on the specific documents needed.

Reimbursement Process: Familiarize yourself with your employer's LSA claim submission process, whether it's through an online portal, mobile app, or paper form. Follow the steps carefully to ensure timely reimbursement.

By reviewing your LSA plan details, consulting with HR, and understanding reimbursement requirements, you can determine if swimming lessons are covered and take full advantage of this valuable employee benefit.

What Types of Swimming Programs Qualify for LSA Reimbursement?

If your Lifestyle Spending Account (LSA) covers swimming lessons, you may be able to get reimbursed for a variety of aquatic programs. Here are some common types of swimming programs that often qualify for LSA reimbursement:

Group Lessons and Classes

Many community centers, fitness clubs, and aquatic facilities offer group swimming lessons for various skill levels and age groups. These classes typically follow a structured curriculum and are taught by certified instructors. Group lessons are often more affordable than private lessons and can be a great way to learn basic swimming techniques, improve your strokes, or even train for a triathlon.

Private Lessons and Coaching

For more personalized attention and faster skill development, you may prefer private swimming lessons or coaching sessions. These one-on-one or small group lessons allow the instructor to focus on your specific needs and goals. Private lessons can be especially beneficial if you have a fear of water, are recovering from an injury, or want to fine-tune your technique for competitive swimming.

Swim Team Fees and Memberships

If you or your child participates in a swim team, your LSA may reimburse the associated fees and membership costs. Swim teams offer structured training, competitions, and social opportunities for swimmers of all ages. Participating in a swim team can help you stay motivated, improve your performance, and develop valuable life skills such as teamwork and sportsmanship.

Adaptive Aquatics and Special Needs Programs

Adaptive aquatics programs cater to individuals with disabilities, special needs, or medical conditions that require modified swimming instruction. These programs often feature specialized equipment, accessible facilities, and trained instructors who can adapt teaching methods to suit each participant's abilities. If you or a family member requires adaptive swimming lessons, your LSA may cover the costs of these specialized programs.

When selecting a swimming program to use your LSA funds, consider factors such as the instructor's qualifications, class size, schedule, and location. Some programs may have specific eligibility requirements, such as age restrictions or prerequisite skills, so be sure to review the program details carefully.

It's also a good idea to check with your employer or benefits provider to confirm that the specific swimming program you're interested in qualifies for LSA reimbursement. They can guide you on any necessary documentation or approval processes to ensure a smooth reimbursement experience.

How to Claim Swimming Lessons on Your LSA

Claiming swimming lessons on your Lifestyle Spending Account (LSA) is a straightforward process. Here's what you need to do:

Enroll in an Eligible Swim Program

Choose a swimming program that meets your LSA's eligibility criteria. This may include factors such as the type of program, instructor qualifications, and facility accreditation. HSA Store notes that while swimming lessons are generally not HSA-eligible, they may qualify for LSA reimbursement under certain plans.

When selecting a program, consider your personal goals, schedule, and learning style. Group lessons, private coaching, swim team memberships, and adaptive aquatics are common options that may be covered by your LSA.

Pay for Lessons Out-of-Pocket

Once you've enrolled in an eligible swimming program, pay for the lessons or membership fees out-of-pocket. Keep all receipts, enrollment confirmations, and any other documentation related to your purchase.

Some LSA plans may offer a debit card that you can use to pay for eligible expenses directly. However, even if you use an LSA debit card, it's still important to keep your receipts in case your employer requires additional documentation.

Submit Required Documentation

To get reimbursed for your swimming lessons, submit a claim to your LSA plan administrator. This typically involves filling out a reimbursement form and providing supporting documentation, such as:

• Receipts showing the date, provider name, amount paid, and description of the service
• Enrollment forms or contracts outlining the terms of the swimming program
• Completion certificates or progress reports, if required by your employer

Your HR department or benefits provider can guide you on the specific documentation requirements and submission process for your LSA plan. Some plans may have claim deadlines or spending caps, so be sure to review your plan details carefully.

Receive Reimbursement

Once your LSA claim is approved, your reimbursement will be processed according to your plan's payout schedule. This may involve:

• Direct deposit into your bank account
• A check mailed to your address on file
• A credit applied to your LSA debit card, if applicable

Keep in mind that reimbursements from your LSA are typically treated as taxable income. Your employer will include any LSA reimbursements on your W-2 form, and you'll be responsible for paying applicable taxes on those funds.

By following these steps and staying organized with your documentation, you can easily claim your swimming lessons on your LSA and enjoy the benefits of this valuable employee perk.

Are There Any Restrictions on LSA Swimming Lesson Claims?

While Lifestyle Spending Accounts (LSAs) offer flexibility in covering swimming lessons, there may be some restrictions to keep in mind when submitting claims. These limitations vary by employer and plan design, so it's important to review your specific LSA guidelines. Here are a few common restrictions to be aware of:

Age Limits

Some LSA plans may impose age restrictions on swimming lesson reimbursements, particularly for dependents. For example, your employer might only cover lessons for your children up to a certain age, such as 18 or 21. If you're enrolling a family member in swim classes, check your plan documents or consult with your HR representative to ensure they meet the age requirements for reimbursement.

Skill Level Requirements

Depending on your employer's LSA rules, there may be limitations on the type or skill level of swimming programs eligible for reimbursement. Some plans might exclude advanced or competitive swimming lessons, focusing instead on beginner or intermediate classes that promote general water safety and fitness. Certain programs, like the Levittown Swimming Association, require participants to pass a swim test before enrolling in higher-level courses, which could affect their eligibility under your LSA.

Provider Qualifications

To ensure the quality and safety of swimming lessons covered by your LSA, your employer may establish criteria for eligible providers. This could include requirements such as instructor certifications, facility accreditations, or adherence to recognized industry standards. When selecting a swimming program, research the qualifications of the instructors and the reputation of the organization to increase the likelihood of LSA approval.

Claim Deadlines and Documentation

Most LSA plans have specific deadlines for submitting reimbursement claims, such as within 90 days of incurring the expense. Be sure to file your claim for swimming lessons promptly and include all required documentation, like receipts, enrollment forms, and proof of completion. Missing or incomplete paperwork could delay or even disqualify your reimbursement.

Spending Caps and Limits

Your LSA may have annual or per-claim spending limits that apply to swimming lessons and other eligible expenses. These caps help your employer budget for the benefit and ensure fair distribution among employees. Review your plan details to understand any reimbursement limits and plan your swimming lesson enrollment accordingly.

If you have questions about your specific LSA plan's restrictions or requirements for swimming lesson reimbursement, don't hesitate to reach out to your HR department or benefits administrator for guidance. They can help you navigate the claims process and maximize this valuable employee benefit.

5 Tips for Maximizing Your LSA for Swimming Lessons

If your employer offers a Lifestyle Spending Account (LSA) that covers swimming lessons, you can take advantage of this valuable benefit to improve your aquatic skills and overall well-being. Here are five tips to help you make the most of your LSA funds for swimming lessons:

1. Plan Ahead and Budget Your LSA Funds

Review your LSA plan details and annual spending limits to determine how much you can allocate towards swimming lessons. Consider your personal goals and the frequency of classes you'd like to take throughout the year. Creating a budget and planning ahead can help you maximize your LSA funds and avoid overspending.

2. Choose Cost-Effective Lesson Options

Research different swimming programs in your area and compare prices to find the most cost-effective options that still meet your needs. Group lessons, for example, are often more affordable than private coaching sessions. Look for community centers, public pools, or non-profit organizations that offer quality instruction at reasonable rates. Don't forget to factor in any membership or registration fees when calculating your total costs.

3. Bundle with Other Eligible Aquatics Expenses

Many LSA plans cover a range of aquatics-related expenses beyond just swimming lessons. Check if your plan reimburses costs for swimwear, goggles, caps, or other gear necessary for your lessons. You may also be able to claim pool memberships, aquatic fitness classes, or swim team fees. Bundling these expenses together can help you maximize your LSA reimbursements and support your overall swimming goals.

4. Keep Detailed Records and Receipts

To ensure smooth processing of your LSA claims, maintain accurate records of your swimming lesson expenses. Keep all receipts, enrollment forms, and payment confirmations organized and easily accessible. Note the date, provider name, amount paid, and any other relevant details for each transaction. Some employers may require additional documentation, such as completion certificates or progress reports, so be sure to save those as well.

5. Coordinate with Your Spouse's LSA Benefits

If your spouse also has access to an LSA through their employer, coordinate your benefits to maximize your combined reimbursements for swimming lessons. You may be able to alternate claiming expenses or split costs between your respective accounts. This strategy can be especially helpful if one partner's LSA has more favorable terms or higher spending limits. Just be sure to follow each plan's specific rules and requirements to avoid any claim denials or complications.

Is Using an LSA for Swimming Lessons Right for You?

Before deciding to use your Lifestyle Spending Account (LSA) for swimming lessons, take a moment to reflect on your personal wellness goals and financial priorities. Swimming lessons can offer valuable skills, fitness benefits, and enjoyment for you and your family, but they may not be the best fit for everyone's LSA spending.

First, consider how swimming aligns with your overall health and well-being objectives. If you're looking to improve cardiovascular fitness, reduce stress, or simply find a fun way to stay active, swimming lessons could be a great choice. For families with children, investing in swim classes can promote water safety, confidence, and lifelong healthy habits.

Next, review your LSA balance and spending deadlines to ensure you have sufficient funds to cover the cost of lessons. Keep in mind that LSA reimbursements are typically treated as taxable income, so factor that into your budgeting as well.

If you're new to LSAs or looking for a user-friendly solution, Forma's Lifestyle Spending Accounts offer a streamlined platform for managing your benefits. With Forma, you can easily track your spending, submit claims, and access a wide range of eligible wellness expenses, including swimming lessons.

Finally, weigh the value of swimming lessons against other eligible LSA expenses that may support your well-being goals. While aquatics programs can certainly be beneficial, you may also want to consider options like fitness memberships, stress management classes, or nutritional counseling, depending on your individual needs and preferences.

Ultimately, the decision to use your LSA for swimming lessons depends on your personal circumstances and priorities. Carefully evaluate your goals, available funds, and the potential impact on your overall wellness to determine if this is the right choice for you and your family.

Whether swimming lessons qualify for reimbursement depends on your employer’s LSA plan. Forma simplifies the process by offering a flexible platform to track spending, submit claims, and maximize your benefits. Schedule a consultation with one of our experts today.