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.
LPFSAs have the same contribution limit as a healthcare FSA at $2,700, 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 2019 FSA contribution limits.
With an LPFSA, participants are restricted to a limited number of eligible expenses: vision and dental. Common eligible expenses include:
Contact your benefits administrator for a full list of eligible expenses.
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).
For more information about LPFSAs, check out these blogs from the Captain: