A Limited Purpose FSA (LPFSA) works with a Health Savings Account (HSA) when you are enrolled in the High Deductible Health Plan (HDHP) and is a great way to pay for expenses with pretax dollars.

 

You can use your LPFSA pretax dollars to pay for qualified vision and dental expenses, while utilizing your HSA for medical expenses - all with the convenience of one debit card.

With a LPFSA, you elect an annual contribution amount that is deducted from your paycheck each pay period, in equal installments throughout the year. Your annual contribution amount is available to you on day one on the plan; you do not need to wait to accrue the funds.

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The LPFSA contribution limit for 2026 is $3,400. Any funds not used by the end of the plan year grace period will be forfeited in accordance with IRS regulations, and elections cannot be changed after the enrollment closes – so you’ll want to plan wisely. 

 The amount of your paycheck that goes into an LPFSA will not count as taxable income, so you will have immediate tax savings.

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Limited Purpose FSA Expenses

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Some examples include:

 

• Out-of-pocket expenses like co-pays, coinsurance, or deductibles for dental and      vision plans.

• Purchasing glasses, contact lenses, or laser eye surgery.

• Orthodontia care such as braces, or dental expenses not covered by your insurance.

• Preventive care not covered by your health plan (you will need to submit a manual claim for those expenses)

 

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