Who should read this article?
Anyone with a spending account administered by League like a Lifestyle Spending Account (LSA) or Health Spending Account (HSA).
Unfortunately, once funds have been allocated to a spending account, they can't be transferred. You won't be able to move funds between your Health Spending Account (HSA) and Lifestyle Spending Account (LSA).
If you have the opportunity to decide how you want to allocate your funds between your spending accounts during enrollment and at the start of each policy period, take care while making this selection. Once you select your allocations and the funds have been added to your account, we will be unable to change it for you.
Why can't I transfer funds between accounts?
Funds can't be transferred between League Spending Accounts because of Canada Revenue Agency (CRA) guidelines. Health Spending Accounts (HSA) are private health services plans, and are overseen by the Canada Revenue Agency (CRA). HSAs can only be used on eligible medical expenses and aren’t taxable benefits.
The CRA doesn’t oversee Lifestyle Spending Accounts (LSA), which can be spent on a wider variety of products and services and are taxable benefits.
If funds were transferred from an HSA to an LSA (which can be spent on things other than eligible medical expenses), the HSA would no longer meet the requirements of a private health services plan by the CRA. It would be considered extra income for the employee and would be taxed.