MyLife Spending Accounts
Offer your employees financial assistance and perks that more closely align with what they want and need.
What is a MyLife Spending Account?
Not every employee has the same lifestyle needs. The OCA MyLife Spending Account gives you the flexibility to allow employees to spend benefit dollars on the things that matter most to them. From physical and mental health needs, to professional and educational development, to travel and entertainment, you have complete freedom to determine how your employees are able to spend their lifestyle spending account dollars.
How do Lifestyle Accounts Work?
Determine Your Budget
Decide how much you would like to spend per employee as well as how you intend to fund the accounts – the full amount up front or smaller amounts spread throughout the plan year.
Create your own unique program parameters – restrict the use of funds to certain types of purchases or leave it wide open. The choice is yours!
Communicate the benefit
Make sure your employees understand how lifestyle spending accounts work and how to use their account funds.
Learn More About MyLife Accounts
To learn more about the OCA MyLife Spending Account and how it can help you provide a more attractive and unique benefits package, contact us today.Downloadable PDF
Is this a carded account?
Yes. However, it is a standalone account, which means a separate debit card is required. If an employee has elected to participate in other OCA health benefit accounts, they will be issued a debit card for their health benefit accounts and a debit card for their lifestyle spending account.
Where is the debit card accepted?
The lifestyle spending account debit card can be used anywhere Mastercard is accepted, as long as the merchant category codes align with the spending parameters established by the employer.
Can employees submit a claim for manual reimbursement?
While a debit card is the most convenient way to access lifestyle spending account funds, employees may use personal funds for qualified expenses and submit claims for manual reimbursement.
If an employee also has a OCA health benefit account, will their lifestyle spending account be listed when they log into the member portal and mobile app?
No. Since the lifestyle spending account is a standalone program, employees will need to create a separate account on the OCA member portal and mobile app for their lifestyle spending account.
Are there any funding limits or minimums?
There are no funding limits or minimums associated with the OCA lifestyle spending account.
Do employers have to offer the same amount to all their employees?
No. Employers have the ability to use a tiered approach when it comes to their lifestyle spending account and offer different amounts to different types of employees. For example, they could offer a higher dollar amount to full-time employees as compared to part-time employees.
Are lifestyle spending accounts tax-advantaged accounts?
Lifestyle spending accounts are post-tax accounts. This means they are funded exclusively by employers, after taxes have been taken out. Because they are post-tax accounts, the IRS does not mandate eligible expenses; rather, employers have the power to determine what types of expenses they would like to cover and how employees can spend their funds.
Do these accounts represent taxable income for employees?
Unlike other types of health benefit accounts, lifestyle spending accounts do not currently have any tax advantages. They are funded by employers, on a post-tax basis, and used funds are considered taxable income for employees
Are there eligibility requirements for a lifestyle spending account?
No. All employees are eligible to participate in a lifestyle spending account, regardless of their full- or part-time status
Do employees have to be enrolled in a health insurance plan in order to participate?
No. Health insurance coverage is not required to participate in a lifestyle spending account. Regardless of their health insurance status, employees can access lifestyle spending account funds.
What types of purchases can be made with a lifestyle spending account?
Employers maintain full control over their lifestyle spending accounts. It is up to them to decide how their employees can spend their account funds – health and fitness services, child care, life coaching, entertainment – the options are endless and the choice is theirs!
Schedule a Demo with OCA
To learn more about the OCA Lifestyle Spending Account and how it can help you provide a more attractive and unique benefits package, contact us today.Request Quote