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.
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.
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).