Because questions about your health accounts can arise when you least expect it, HealthEquity's account mentors are available every hour of every day to share advice, relieve your concerns or let us conduct a personal assessment of your plan options.
Call or email us any time!
1.866.346.5800
LPFSAs: A simple way to save
A limited purpose flexible spending account (LPFSA) allows you to contribute pre-tax dollars to use for eligible vision and dental expenses. If used in conjunction with a health savings account (HSA), it allows you to maximize your pre-tax HSA contributions and contribute additional pre-tax dollars to the LPFSA.
The example scenario below provides estimated LPFSA savings based on a family health plan and a 20% combined federal and state tax rate. Amounts shown are the maximum allowed by the IRS. Your company or provider may allot a lower amount for your LPFSA plan.
out-of-pocket medical expenses
(HSA)
vision/dental expenses
(LPFSA)
tax savings
$1940
FSAs are generally “use-it-or-lose-it” plans. This means that amounts in the FSA at the end of the plan year generally cannot be carried over to the next year. However, the plan can provide for either a grace period or a carryover. Additionally, if an accountholder leaves an employer or retires, unused funds are forfeited. For more details, see IRS publication 969 or consult a tax advisor.
Some plans may allow up to $550 of unused FSA funds remaining at the end of a plan year to be carried over to the next year. Ask your benefits team for details about your plan’s FSA carryover and/or grace period policy.
1
During your employer’s annual enrollment, sign up to participate in an LPFSA and determine the amount you would like to contribute to your LPFSA throughout the year to pay for qualified expenses.
2
Your employer will arrange to have the elected amount of your pre-tax earnings contributed to your LPFSA. The amount withheld from your paycheck is equal each pay period. The full amount that you choose to contribute to your LPFSA throughout the plan year will be available for you to use beginning on the first day of the plan year.
3
When you incur a qualified expense, you can either pay with your LPFSA debit card or submit the expenses through the online member portal for reimbursement. Remember to save all receipts; you will need them for reimbursements and to validate your expenses.
*This list is not comprehensive. For additional information, call HealthEquity at 866.346.5800
TOP
HealthEquity
