LPFSA Guide
Save more on dental and vision expenses
An LPFSA empowers you to maximize tax savings for dental and vision expenses. Plan your spending, know the rules and unlock amazing tax savings.
What is a Limited Purpose
Flexible Spending Account?
LPFSAs are tax-advantaged accounts that let you use pre-tax dollars to pay for eligible dental and vision expenses. Members save on average 30 percent1 on hundreds of products and services. Don’t think of it as money deducted from your paycheck—think of it as money added to your wallet.
Why choose us?
Am I eligible for a Limited Purpose Flexible Spending Account?
Eligibility requires an LPFSA offered through your employer. LPFSAs can be combined with an HSA to maximize long-term savings.
Pairing LPFSA with HSAHow do I sign up?
You can enroll in a health plan and sign up for an LPFSA during your organization’s annual enrollment period.
Choosing between different FSA typesPlan your spending
It pays to be strategic.
Pay for dental, vision and more
Because of the tax savings on contributions, you can save an average of 30 percent1 on qualified medical expenses, including but not limited to:
- Cataract Surgery6
- Contact LensesRx
- Dental Services and Procedures
- EyeglassesRx
- Eye Surgery
- Invisalign Orthodontics
- Orthodontia
- Prescription Sunglasses
- Screening Tests
- Contact LensesRx
- Contact Solution
- Eye Drops
- Eye Exams
- Fluoride Treatment
- Lasik Surgery
- OTC Dental and Teething Pain Products
- Retainer
- Vision Correction
Your savings can add up fast
Here’s an example based on $1,900 annual spending and a 30 percent effective tax rate.
LPFSA savings calculator
Discover the full power of your LPFSA. Just input your planned spending and watch the savings add up.
Calculate my LPFSA tax savingsMake your elections
Once you choose an annual contribution, your employer will deduct that amount pre-tax in equal parts from each paycheck.
LPFSA Annual Contribution Limit
Tax year |
Individual and family limit |
|---|---|
2023 |
$3,050 |
2024 |
$3,200 |
Complement your HSA
Because your HSA stays with you forever, it’s nice if you can avoid spending your HSA dollars. That’s where an LPFSA offers incredible flexibility. Use your LPFSA to pay for routine vision and dental expenses, then save your HSA for long-term healthcare expenses.
Pairing LPFSA with HSA
Know the rules
Don’t get caught by surprise. Carefully review your open enrollment materials.
Timing matters
You only have one year to spend your LPFSA money. Unused funds are forfeited to your employer—usually at the end of the plan year. Some organizations, however, offer options that can make it easier to manage your LPFSA.3
- LPFSA carryover4
Carryover up to $610 of unused funds into the next plan year. - LPFSA grace period
Enjoy an extra 2 ½ months at the end of the plan year to spend LPFSA money.
Limited election period
Elections can only be made during open enrollment unless you have a qualifying life event,5 which may include changes to:
Employment
status (Including
medical leave)
Marital status
Number of
dependents
No double-dipping
You can’t get reimbursed twice for the same expense (example: reimbursement + deduction from tax returns).
We make it easy to get reimbursed:
- Pay for your products or services
- Upload your receipts online or in the mobile app
- Choose reimbursement by check or have funds deposited directly into your bank account
Want more?
Check out these additional resources.
LPFSA webinar
Level up your health savings. Discover helpful strategies for using an LPFSA—and how to save your HSA for a rainy day.
Explore other FSA types
1The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.Return to content
2Accounts must be activated via the HealthEquity website in order to use the mobile app.Return to content
3Plans vary by employer. Please review your plan documents carefully or consult your employer for information about your company's benefits.Return to content
4Depending on your employer’s plan, you may carry over up to 20 percent of that plan year’s maximum health FSA salary reduction contribution ($550 for plan years beginning in 2020).Return to content
5Please refer to your plan documents for more information.Return to content
6Please note: if cataract surgery is covered under your medical insurance, it will not be eligible for reimbursement through your LPFSAReturn to content
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
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