Limited Purpose FSA

A Limited Purpose Flexible Spending Account (LPFSA) is a specialized healthcare savings account employers offer. It complements a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA).

What Does A Limited Purpose FSA Do?

The LPFSA will only pay medical or dental expenses for individuals with inactive health savings accounts. Unlike an FSA, there are two types, the LPFSA and the HSA. 

Tips For Using A Limited Purpose FSA

In the next few slides, we have shared some Tips For Using A Limited Purpose FSA

Understand Eligible Expense

Familiarize yourself with the list of qualified dental and vision expenses that your LPFSA can cover. This includes dental cleanings, orthodontics, vision exams, eyeglasses, and contact lenses. 

Estimate Your Expenses Accurately

Take the time to estimate your dental and vision expenses for the upcoming year. This will help you determine an appropriate contribution amount to your LPFSA. 

Keep Track Of Deadline

Be aware of important deadlines related to your LPFSA. This includes the enrollment period, submission deadlines for reimbursement claims, and any grace period.

Maximize Tax Saving

Keep track of your LPFSA contributions and consult with a tax professional to fully understand the tax benefits and how to maximize your savings. 

Stay Informed

Read the plan documents and stay updated on any changes or updates to your LPFSA. Understand the rules and regulations your employer and the Internal Revenue Service (IRS) set.