How does a limited purpose FSA work?Īn LP-FSA has the same contribution limits as a traditional FSA. 1 This means once you’ve met your healthcare plan deductible, you may be able to use your LP-FSA to pay for qualified medical expenses. In some cases, you can use an LP-FSA to pay for post-deductible medical expenses. Unlike a traditional FSA - which can help pay for a variety of medical costs, including dental and vision - an LP-FSA is intended for just dental and vision care expenses. LP-FSAs can cover individuals, spouses, and eligible dependents. What is a limited purpose FSA?Ī limited purpose FSA is a tax-advantaged savings account that lets you set aside pre-tax money to pay for eligible dental and vision expenses. Learn more about LP-FSAs, including who’s eligible, what’s covered, and how to use one. Limited-purpose FSAs, which can be used for dental and vision expenses, are available to employees enrolled in a high-deductible health plan (HDHP) with a health savings account (HSA). Dependent care FSAs are intended for participants with dependents.
In addition to traditional FSAs - also referred to as healthcare FSAs - there are dependent care FSAs (DC-FSAs) and limited purpose FSAs (LP-FSAs). But did you know an employer can offer different types of FSAs? You may be familiar with flexible spending accounts (FSAs) - employer-sponsored accounts that can help you save money on healthcare expenses.
