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Lifestyle Spending Account (LSA) Rules & Taxes | CafeHealth

by: Jeronimo TabordaPublished on: 02/10/2026

LSAs have no IRS contribution cap, but reimbursements are usually taxable wages subject to income, Social Security, and Medicare tax. Here's how it works.

lifestylespendingaccount

Lifestyle Spending Account Administration: A Plain-English Guide for Employers

by: Jeronimo TabordaPublished on: 03/09/2026

LSA reimbursements are taxable wages, subject to the 7.65% FICA rate and Box 1 W-2 reporting. Here's how lifestyle spending account administration works.

lifestylespendingaccountadministration

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