Retirement planning services help people answer practical questions about the decades ahead: how much to save, when to claim Social Security, how to combine old workplace accounts, or what a pension payout option means. The service is the advice and education, not the savings. Employers include this category because many employees never pay for a plan on their own, even when retirement is close.
Who uses retirement planning support
Employees in their fifties and sixties are the obvious users, especially those deciding when to stop working or how to turn savings into income. Mid-career employees with several old accounts from past jobs often want help pulling things together. Younger employees sometimes use the category once to set a savings target and revisit it years later. Couples with different retirement dates also benefit from an outside planner who looks at both sides of the household. For related ideas, see our article on financial wellness benefits.
Retirement planning services commonly covered
This category typically pays for guidance and education, while savings and investments stay in retirement accounts. Most employees use it once or twice, around a major decision.
- A one-time retirement readiness plan from a financial planner
- Hourly sessions to review retirement income options
- Workshops on Social Security and Medicare timing
- Retirement planning software or calculator subscriptions
- Courses on investing basics for retirement savers
- Consultations about consolidating old workplace retirement accounts
This category is one of many; our overview of LSA eligible expenses covers the rest.
Retirement planning limits to set clearly
- Contributions to a 401(k), IRA or any other retirement account are not LSA expenses.
- Investment management fees charged as a percentage of assets are usually excluded.
- Product commissions, such as those on annuities, are typically not reimbursable.
- Estate planning documents like wills and trusts may belong in a legal services category, if the plan has one.
- Some plans require the planner to hold a recognized professional credential.
Designing retirement planning into an LSA
Show how it differs from your 401(k) match
A 401(k) match adds money to an employee's retirement account on a tax-deferred basis. The LSA pays for advice with taxable dollars and never touches the account, so the two work side by side.
Point to free resources first
Many retirement plan providers offer free guidance to participants. List it in your plan materials so employees can use the LSA for independent planning that goes further.
Keep advice independent
Let employees choose their own planner. The employer funds access and stays out of the recommendations.
Frequently asked questions
Can I use my LSA to pay for retirement planning help?
Many employers with a financial wellbeing category include it, but your plan decides. Fees for a written plan, planning sessions or retirement workshops are typical. Money you save or invest for retirement is not an LSA expense.
Can I move LSA funds into my 401(k) or IRA?
No. LSA funds reimburse eligible expenses and can't be deposited into a retirement account. Contributions to those accounts happen through payroll or your own transfers, under separate rules.
Is a planner's percentage-of-assets fee covered?
Usually not. Plans generally reimburse flat or hourly fees billed for a service, not fees deducted from an investment account. If you want to use your LSA, ask whether the planner offers a flat-fee option.
Does the LSA replace guidance from my retirement plan provider?
No, it adds to it. Your retirement plan provider may offer free guidance, while the LSA lets you pay an independent planner of your choosing for a fuller picture.
Tax treatment depends on the plan and location; our guide explains how LSA reimbursements are taxed.
This content is general information, not medical, legal, tax, or financial advice. Employer plan terms determine eligibility, and requirements may vary by location.
