Limited Purpose Flexible Spending Accounts:
Are you saving on dental and vision expenses?
Preparing for the unknown is tricky, but you can plan for the expected. Limited Purpose Flexible Spending Accounts (LPFSAs) are designed to help you save money and cover eligible dental and vision expenses—such as dental checkups, vision exams, braces, and eyeglasses.
Pre-tax earnings from your paycheck go straight to your LPFSA and are available for use on the first day of your plan year. Additionally, if you also have a Health Savings Account (HSA), using your LPFSA instead of the HSA on eligible dental and vision expenses can allow your HSA balance to grow and continue accumulating tax-free interest.
Features:
- Coverage for you, your spouse, and other eligible dependents.
- Contribute as little or as much as you want, up to the legal limit set by the Internal Revenue Service and your employer.
- Funds may be forfeited at the end of the plan year if not used, dependent on your employer’s selections.
Features
Grace Period and Carryover Provisions
Employers can offer a grace period of up to two and a half months for employees to incur eligible expenses to be reimbursed from the previous plan year. Alternatively, they may allow employees to carry over unused LPFSA funds into the next plan year, with the maximum carryover amount determined by the IRS and adjusted yearly.
Tax
Benefits
Pre-tax contributions taken from your paycheck may reduce taxable income.
Multiple
Filing Options
Pay for eligible expenses with a Benefits Debit Card,
snap and submit a picture of receipts with AFmobile®,
or submit your claim with documentation via your online account.
HSA
Compatible
Utilizing an HSA and LPFSA together can help maximize savings and tax benefits.
Connect with your American Fidelity account manager to learn more about Limited Purpose Flexible Spending Accounts!