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Limited Purpose FSA Overview

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HSA owners: Let’s talk about the Limited Purpose FSA!

A limited purpose FSA (LPFSA) is a tax-advantaged benefit account available only to those with an HSA. You may use the LPFSA to pay for qualified vision and dental expenses.

Contributions and Rollover

LPFSAs have the same contribution limit as a healthcare FSA at $2,650, and participants contribute on a pre-tax basis. Depending on setup, at the end of the year your plan may have a 2.5 month grace period to spend unused funds, or rollover of up to $500, or “use it or lose it.”

Learn more about 2018 FSA contribution limits.

Qualified Expenses

With an LPFSA, participants are restricted to a limited number of eligible expenses: vision and dental. Common eligible expenses include:

Vision

  • Co-insurance, copayments, deductibles for vision insurance plans
  • Contact lenses and solution
  • Eye exams
  • Eyeglasses
  • Vision procedures (Laser eye surgery, Lasik, etc.)

Dental

  • Co-insurance, copayments, deductibles for dental insurance plans
  • Dental care (non-cosmetic)
  • Dentures, bridges, and certain veneers
  • Orthodontia
  • Dental x-rays

Contact your benefits administrator for a full list of eligible expenses.

No Double-Dipping on Claims!

It’s important to remember that if you claim an expense through your LPFSA, you cannot claim it again through your HSA (and vice versa).

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