Limited Purpose FSA
Plan ahead for dental and vision costs
Whether you’re anticipating some big-ticket dental work or you want to set aside some cash for your daily contact lenses, a limited purpose FSA can help.
What Is a Limited Purpose FSA?
A dedicated account for vision and dental expenses
A limited purpose flexible savings account, or LPFSA, is available to employees who are enrolled in a high-deductible health plan as well as an HSA. Establishing an LPFSA can save you money on taxes by using your LPFSA dollars for your dental and vision expenses while preserving your HSA funds for other purposes, including saving those funds for the future.
- Save an average of 30% on qualified dental and vision expenses by using pre-tax dollars
- Maximize your tax savings by enrolling in both an HSA and LPFSA
- Great for big ticket expenses like LASIK and braces
- Your full election amount is available on Day 1 of the plan year — like an interest-free, tax-free loan
- Like standard FSAs, LPFSA funds operate on a “use it or lose it” basis, so it’s important to plan accordingly
Contribution Limits
Limited purpose FSA
2025 maximum contribution is $3,300.
LPFSA tax benefits
| Federal Tax Rate | Annual FSA Contribution | Annual Tax Savings |
|---|---|---|
| 15% | $1500 | $340 |
| 15% | $2700 | $612 |
| 25% | $1500 | $490 |
| 25% | $2700 | $882 |
| 35% | $1500 | $610 |
| 35% | $2700 | $1152 |
For illustrative purposes only. Savings calculations are based on the Federal tax rate listed in the table and 7.65% FICA. Your tax situation may be different. Please consult your tax advisor.
LPFSA calculators
Wondering how much to set aside in your LPFSA? Crunch the numbers with our calculators.
LPFSA forms
We’ve rounded up a list of forms that are especially useful if you’re on your employer’s plan.
LPFSA videos
Still a little murky on the ins and outs of LPFSAs? Check out our videos for more helpful information.
LPFSA FAQs
We put together all of your most pressing LPFSA questions and answers in one place.
Frequently Asked Questions
View All ›Elections can only be altered if you experience a change in status as defined by IRS regulations, such as a marriage, divorce, birth, or death in your immediate family.
With an LPFSA, your entire annual election amount is available on the first day of the plan year even though you haven’t yet contributed that amount.
If you have a benefits debit card, simply swipe it at the register. Otherwise, just file a claim online, be sure to include the receipt documenting the patient, provider, date and type of service, and cost. Once approved, your reimbursement will be direct deposited into your bank account.
Expenses are incurred at the time the dental or vision care was provided, not when you are invoiced or pay the bill.
Most LPFSAs cover eligible expenses for you and all of your dependents, even if they’re not covered under your primary health plan. For more specific coverage details, please refer to your employer’s Section 125 document.
Your annual election will be divided by the number of pay periods in your plan year. This amount will be deducted from your paycheck before taxes are assessed.
