Limited purpose lp fsa eligible expense list important. A limited purpose health fsa is similar to a generalpurpose health fsa. Participating in a limitedpurpose flexible spending account fsa is like receiving a 0 discount from your dental and. Limitedpurpose flexible spending account lfsa eligible expenses a limitedpurpose health flexible spending account lfsa is available for employees enrolled in their employers group sponsored health plan who also have a health savings account hsa.
Care fsa is automatically converted to a limited purpose medical care fsa during the grace period. Eligible limited expense health care fsa lex hcfsa. What is an limited purpose fsa and how account holders can use it. Eligible expenses are defined by irs rules and your employers plan. You can use your limited expense health care fsa lex. Qualified expenses eligible for reimbursement with a limited purpose health fsa include. Items 2 and 3 can be for your spouse or a dependent meeting the requirement for that type of coverage. If you are currently contributing to, or plan to contribute to an hsa, a limited fsa might be just what you need. What expenses can be covered by a limited purpose fsa. January 1 december 31, 2016 a limited purpose flexible spending account lpfsa allows a participant to remain health savings account hsa eligible and take advantage of an fsa for limited health care expenses. Any funds left in your hra at the end of 2016 will automatically carry over to 2017. Your standard health fsa allows you to pay for eligible medical, vision, and dental expenses that are not covered by another health plan. This allows you to continue incurring and submitting eligible expenses, only under the limited purpose medical care fsa rules. A limited purpose health fsa is similar to a general purpose health fsa.
An lp fsa covers eligible dental, orthodontia and vision expenses only and is intended for employees enrolled in a health savings account hsa. Its a great perk from your employer, and itll save you money because you dont pay taxes on the dollars you set aside. Expenses are limited to dental and vision expenses identified with an in the list below. Limited purpose limited purpose flexible spending account lpfsa flexible spending accounts lpfsas allow you to set aside money from your paycheck on a pretax basis to pay for dental and vision care expenses. Benefits of a limited purpose fsa a limited purpose fsa allows you to continue to contribute to an hsa while also contributing to an fsa for vision. If you are enrolled in a limited medical fsa or combination medical fsa, your eligible expenses may be different. Enroll in the fsa and start saving on these expenses and more. Eligible and ineligible expenses starting january 1, 2011, you will not be able to use these spending accounts to pay for most over. For example, an lpfsa may be limited to only dental and vision expenses for the entire plan year. Participants use pretax dollars to pay for qualified healthcare expenses incurred during the plan year, but is limited to only vision and dental expenses. What is the advantage of having a limited purpose health fsa.
You can elect to have a portion of your paycheck contributed pretax to pay for qualified medical expenses such as deductibles, copayments, dental and vision, or to pay for qualified dependent care. Individuals may not contribute to a health savings account hsa if they are covered by any non. Reimbursements from an fsa that are used to pay qualified medical expenses arent taxed. Your benefitwallet health care flexible spending account hcfsa is one of the most powerful savings accounts in america allowing you to save up to 35% in taxes on every dollar you contribute. As of march 27, 2020, you no longer need a prescription from your physician to payget reimbursed for otc drugs and medicines. This account lets you use pretax dollars to pay for eligible expenses for you, your spouse. If you have questions on what constitutes an lp fsa eligible expense, please contact our customer relations. Unlike a generalpurpose health fsa, however, funds in a limitedpurpose health fsa can only be used to pay for qualifying dental.
Dual purpose health fsa expenses eligible otc supplies dependent care expenses afterschool. What if my spousedependents are covered by a separate. Expenses may be incurred by you, your spouse, or qualified dependents. If you have a standard fsa, you are ineligible for contributing to an hsa. The limited purpose fsa works like a general purpose or full coverage fsa. Eligible fsa expenses would then be limited under this provision. Limited purpose fsa dependent care fsa dental care dental exams and cleanings fillings, root canals and crowns dentures and bridges orthodontia vision care eyeglasses contact lenses contact lens solution laser vision correction day care. The limited purpose flexible spending account or lpfsa allows you to contribute pretax dollars to pay for certain eligible health care expenses. The irs allows certain medical, dental, vision, and related services to be reimbursed through an fsa. The irs determines which expenses are eligible for reimbursement. You can use your abg benefits card to pay your providers for eligible dental and vision expenses, or pay with your personal funds and submit a claim for reimbursement.
Its an account you elect to set aside pretax dollars to pay for certain health care expenses. From a to z, every item and service deemed eligible for taxfree spending will be here, complete with details and requirements. For example, if you have a dental cleaning on december 28, 2016 but didnt pay for it until january 2017, the expense would count for 2016. For more information, see your employee reimbursement account era participant guide. When you spend your hcfsa funds on qualified expenses, you are never taxed. Feb 11, 2020 medical expenses include dental expenses, and in this publication the term medical expenses is often used to refer to medical and dental expenses. Limited purpose fsa eligible expense list important. The irs determines which expenses can be reimbursed by an fsa. For item 4, if you, the account beneficiary, arent 65 or older, medicare premiums for coverage of your spouse or a dependent who is 65 or older generally arent qualified medical expenses. Limitedscope flexible spending account lsfsa eligible expenses a limitedscope health flexible spending account lsfsa is available for employees who are not eligible for their employers group sponsored health plan and are not enrolled in any employers group sponsored health plan. Here it is the mostcomprehensive fsa eligibility list available on the web. If there is a checkmark in the first column of the eligible expense list this expense is covered under the standard fsa. You can use your limited purpose fsa to pay for a variety of dental and vision care products and services for you, your spouse, and your dependents. You can use your limited expense health care fsa lex hcfsa funds to pay for a variety of dental and vision care products and services for you, your spouse, and your dependents.
Dependent care fsa the dependent day care fsa reimburses for dependent day care expenses incurred so you can work. Save an average of 30 percent on eligible outofpocket dental and vision. Health care fsa you can use this account to pay for eligible medical, dental, vision, hearing and prescription drug expenses for you, your spouse and your eligible tax. Fsa eligible expenses what are some fsa eligible items. An lp fsa covers eligible dental and vision expenses only and is intended for employees enrolled in the high deductible health plan with health savings account hsa. A limitedpurpose flexible spending account lpfsa allows you to pay for eligible outofpocket dental, vision, andor preventive care expenses with pretax dollars. An lp fsa covers eligible dental, orthodontia and vision expenses only and is intended for employees enrolled in a. Its important to remember that qualified expenses must be approved by the irs. However, under a limited purpose fsa, eligible expenses are limited to qualifying dental and vision expenses for you, your spouse, and your eligible dependents. A limitedpurpose health flexible spending account fsa is much like a traditional, generalpurpose health fsa. Limited purpose health sa page 1 there are two types of health flexible spending account fsa. Select benefithealth care fsaday care fsalimited health carehsa please select the criteria below to filter your results. If you pay for anything other than eligible expenses with your lpfsa, the amount will be.
You will not need a prescription for insulin and diabetic supplies. If you are currently participating in a highdeductible health plan hdhp and are contributing to an hsa, you may also participate in a limited purpose health fsa. Instead, you are eligible for a limited purpose healthcare fsa through your employersponsored fsa plan. You can only use funds up to the current balance in your account. The ubs flexible spending accounts are administered by your spending account ysawhich is linked to your benefits resources website. A health fsa may receive contributions from an eligible individual. Lab examstests blood tests, spinal fluid tests, urine. You must be enrolled in the hsa ppo plan option to use the limited purpose fsa.
Limited purpose flexible spending account plan year. With a limited expense health care fsa, you use pretax dollars to pay qualified outofpocket dental and vision care expenses. Overthecounter otc products and supplies are eligible expenses. Use the funds to pay for a broad range of expenses for you, your. Covered expenses include vision, dental, and orthodontic expenses incurred by you and your family. This only applies to otc drugsmedicines purchased on or after january 1, 2020. You can view a comprehensive list of eligible expenses by logging into your wageworks account. A limited purpose fsa lpfsa offers great tax savings on eligible expenses, and does not interfere with your or your spouses hsa eligibility. Eligible limited purpose fsa expenses below is a partial list of eligible expenses that are reimbursable through an lpfsa. A limited purpose health flexible spending account referred to as a limited purpose fsa is part of your benefits package.
The traditional, generalpurpose health fsa allows you to be reimbursed for eligible medical, prescription, dental. A limited purpose flexible spending account fsa is a savings option for employees who are enrolled in a health savings account hsa. A flexible spending account fsa lets you set aside money from your paycheck on a pretax basis to use for eligible outofpocket expenses. Limitedpurpose health fsa frequently asked questions what is a limitedpurpose flexible spending account. Eligible limited expense health care fsa lex hcfsa expenses. Limited purpose fsa eligible expense list and election worksheet. You can use your limitedpurpose fsa to pay for a variety of dental and vision care products and services for you, your spouse, and your dependents. An limited purpose flexible spending account offers a taxfriendly tool for paying dental and vision expenses while potentially adding to your hsa savings. It is similar to a traditional general purpose health.
Flexible spending account fsa funds can be used for hundreds of eligible expenses including some health. Below is a partial list of expenses that qualify for fsa reimbursement. It is similar to a traditional general purpose health fsa, allowing you to set aside pre. Take a look at the following chart and information, along with the frequently asked questions. You can deduct on schedule a form 1040 or 1040sr only the part of your medical and dental expenses that is more than 7. The money you contribute to this account is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.
For the complete list of eligible and ineligible expenses, visit. The limited purpose fsa works like a traditional fsa. Flexible spending accounts fsa health care medical fsa. As always, receipts may be requested after the card is used to substantiate the. Health fsa and limitedpurpose fsa expenses list a complete list of eligible expenses and, if necessary, supporting documents required for reimbursement. Medical expenses include dental expenses, and in this publication the term medical expenses is often used to refer to medical and dental expenses. Flexible spending account products and services payflex. What if my spousedependents are covered by a separate, nonhighdeductible health plan. What is the advantage of having a limitedpurpose health fsa. When using your flexible spending account fsa or limited purpose fsa funds to pay for eligible dental expenses, its important to know your payment options. Now you can, with a limited purpose flexible spending account, sponsored by your employer and administrated by payflex.
Limited purpose fsa for individuals who own and contribute. If you pay for anything other than eligible expenses with your lpfsa, the amount will be taxable, and you will be required to repay the amount or pay an additional 20 percent tax penalty. Limited purpose flexible spending accounts real savings. Eligible expenses in an hra will vary depending on plan design. You get to use money left in your account for eligible dental and vision expenses. Eligible expenses can be incurred by you, your spouse, or qualified dependents. Covered expenses include vision, dental, and orthodontic expenses incurred by. Participation in an hsa plan has no bearing on participation in the dependent care fsa. The limitedpurpose fsa works like a generalpurpose or full coverage fsa. If you are enrolled in a high deductible health plan hdhp, with a health savings account hsa to. Expenses must be incurred before they can be reimbursed and you may use your fsa debit card if you have this option available to you to pay for the out of pocket expenses eligible under the limited purpose fsa. An hra must receive contributions from the employer only. Eligible limited purpose fsa expenses 4601 college blvd. If so, then you might want to open a limited purpose health flexible spending account fsa to save money.
Limited purpose fsa the limited purpose fsa lets you set aside pretax money to pay for eligible outofpocket vision and dental expenses. It covers medical, dental, vision, and pharmacy expenses. Dependent care fsa, healthcare fsa general purpose, and limited purpose fsa for healthcare. The difference between a general purpose health fsa and limited purpose fsa is the expenses that are eligible for reimbursement. Longterm health care expenses do not qualify for reimbursement. Publication 969 2019, health savings accounts and other. Box 3627 little rock, ar 72203 18887nevada 18887638232.
Maximize your tax savings with both an hsa and a limited purpose health care fsa. For more information, see your era participant guide. If there isnt a checkmark the expense is not covered under the fsa. Limited purposescope fsa when you do have an hsa a limited purpose scope flexible spending account is a savings option for active employees. Your limited expense health care fsa pays for qualifying dental and vision services and certain products. Why is it a good idea to have a limited purpose fsa.
Flexible spending account fsa frequently asked questions. A limited purpose health flexible spending account referred to as a limited purpose fsa is much like a typical, general purpose health fsa. Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Flexible spending account fsa take advantage of significant tax savings by participating in a flexible spending account fsa. A limitedpurpose flexible spending account fsa is a savings option for employees who are enrolled in a health savings account hsa. Learn which health products and expenses are covered by your flexible spending account fsa. A limitedpurpose health flexible spending account referred to as a limitedpurpose fsa is part of your benefits package. Limited purpose fsa limitedpurpose flexible spending accounts a limitedpurpose flexible spending account lpfsa allows you to pay for eligible outofpocket dental, vision, andor preventive care expenses with pretax dollars. Examples of eligible expenses for standard health fsas. Flexible spending account fsa funds can be used for hundreds of eligible expenses including. Instead, a limited purpose fsa, which covers only dental, orthodontic and vision expenses, is. You have 247 access to your hra account information at. Insurance premiums of any type are not eligible expenses under an fsa.
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