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.
