Limited Purpose Flexible Spending Account
Review these frequently asked questions and tips for managing your Limited Purpose Flexible Spending Account, or LPFSA.
How do I access my LPFSA online?
If you already have an American Fidelity online account, simply log in to access your reimbursement account(s). If you have not created an account, register for an account now. Then, follow the prompts to complete the registration process. You will use this same registration information on the mobile app, AFmobile®.
What expenses can be paid for with an LPFSA?
Typical eligible expenses include qualified dental and vision expenses, like braces or eyeglasses. Ask your employer for the specifics of your plan.
How much can I contribute to my LPFSA?
The 2020 maximum allowed by law to contribute pre-tax into this account is $2,750 per plan year. Please note, this amount may be further limited by your employer.
When is my LPFSA money available?
Your entire LPFSA election is available on the first day of the plan year. To view your plan year, start and end dates, log in to your online account.
What happens to unused money in my account?
LPFSAs are “use or lose” accounts. This means, at the end of your plan year, the funds remaining in your account may be forfeited and returned to your employer.
If your employer has elected a carryover provision, you may be able to carry over up to $500 of unused LPFSA contributions to the next plan year.
If your employer has elected a grace period, you will have 2.5 months following the end of your plan year to incur LPFSA claims for the previous plan year’s account balance.
Your plan also includes a runoff period that allows you to file claims for the previous plan year’s expenses. However, these expenses must have been incurred during the plan year or grace period (if applicable).
Log in to your online account to view your plan dates or talk to your employer to discuss specifics.
Who is covered by an LPFSA?
Only an individual who is a spouse, “qualifying child,” “adult child,” or “qualifying relative” of the account holder can be considered a qualifying dependent for reimbursement of medical expenses.
What is the difference between an LPFSA and a Healthcare Flexible Spending Account (HCFSA)?
An LPFSA is typically reserved for paying specific HSA-compatible medical expenses—like dental and vision costs—while HCFSAs can be used for a wide range of eligible medical expenses.
Additionally, LPFSAs may be paired with a Health Savings Account (HSA), while an HCFSA may not. Generally, you may not have an HCFSA and LPFSA at the same time.
What is the difference between an LPFSA and a Dependent Care Account (DCA)?
An LPFSA covers eligible dental and vision expenses that you would otherwise pay for out of pocket. A DCA covers employment-related expenses for dependent care. These expenses must be services that allow you to go to work, and typically include day care and elder care for legal tax dependents.
Can I transfer money from my LPFSA to my DCA?
No. Contributed funds must remain in their designated account.
What is a Health Savings Account?
A Health Savings Account (HSA) allows eligible individuals who are covered by a qualified High Deductible Health Plan (HDHP) to pay for eligible medical expenses of the eligible individual, his/her spouse, and his/her tax dependents.
An HSA helps you pay for the medical expenses not covered by your HDHP—tax-free.
When can I make election changes?
Normally, you can only elect contributions into your HCFSA during a yearly open enrollment period, but there are exceptions. Qualifying life events include:
- Status changes
- Change in marital status
- Birth of a child
- Adopting or placing a child for adoption
- Change in employment status that impacts plan participation status
- Certain judgments, decrees, or orders
- Loss of entitlement to Medicare or Medicaid
Election changes may only be made if the change is consistent with and on account of the qualifying life event. Your employer determines if you can make mid-plan year election changes. You should contact your employer if you've experienced a qualifying event and wish to make a change.
Benefits Debit Card
What is a Benefits Debit Card?
A Benefits Debit Card allows you to pay for eligible medical expenses. Remember, if you have elected an LPFSA, your expenses would be limited to those related to dental and vision. So, if your employer has elected to offer the Benefits Debit Card, you may use the Card for dental and vision expenses only.
Please note – if you use your Benefits Debit Card to pay for eligible dental and vision expenses, you must submit a receipt* for every transaction.
Where can I use my Benefits Debit Card?
My Benefits Debit Card was lost or stolen. How do I get a new one?
My Benefits Debit Card is blocked. How can I reactivate it?
If I have a Limited Purpose Flexible Spending (LPFSA) and an HSA, will my Benefits Debit Card work for both?
If you have both an LPFSA and an HSA, you may use your red Benefits Debit Card for both accounts. Eligible vision and dental expenses will be deducted from LPFSA first, since those funds expire at the end of your plan year. When your LPFSA funds have been used up, your HSA funds will be deducted.
If my card is blocked due to an unsubstantiated LPFSA claim, can I still use my card to access my HSA funds?
If you have an unsubstantiated LPFSA claim, your card will remain blocked for all accounts—including your HSA—until approved documentation is submitted.
What is a pending transaction?
Pending transactions cannot be auto adjudicated and will need to be substantiated by providing sufficient documentation. You will receive a documentation request letter for these transactions. Learn how to submit documentation.
To submit documentation:
Log in to your online account or AFmobile
- Select the Additional Documentation button
- Select Reimbursement Account(s)
- Select the pending transaction and click Add Receipt to upload documentation
How do I request additional debit cards for my family members?
If you have additional debit card users, you’ll need to request cards for them through your online account. Here’s how:
- Log in to your online account.
- Select the Access My Reimbursement Account button.
- Click your Username on the right side of the navigation bar.
- From this page, you can add or update an existing dependent, as well as manage other account details.
- When adding a family member, the dependent or spouse’s Dependent ID is their Social Security number.
- In the Add Family Member window, select the box to Issue Dependent Card.
- When complete, click Next and Save.
Why do I have to submit receipts for every LPFSA claim?
The Internal Revenue Code (IRC) regulations have requirements stating that expenses must be substantiated using itemized receipts, third party statements, or an Explanation of Benefits. To comply with IRC guidelines, we request documentation of your expense to verify the eligibility of the purchase.
What information does a claim documentation or receipt need to include?
Your documentation should include:
- Itemized receipts for an expense
- Original date of service
- Description of service rendered or expense
- Charges for the service or expense
- Provider of the service or expense
- Recipient of the service or expense
Why did I receive a “request for documentation” letter in the mail?
You will receive a request for documentation via mail if you used your Benefits Debit Card to make a Limited Purpose FSA purchase, or if you submitted an out of pocket reimbursement claim without a receipt. You also may receive this letter if the documentation you submitted wasn’t sufficient.
These letters are sent the day after a purchase is made or when the claim is reviewed and determined to be missing documentation or containing insufficient information. So, when receiving this letter, you may have already submitted the necessary documents.
Why did I receive an “ineligible” or “insufficient documentation” letter, and what should I do now?
You will receive this letter if your Benefits Debit Card was used for an expense incurred outside the plan year, an ineligible expense, or if the documentation you submitted was insufficient.
When the documentation cannot be provided or the expense is ineligible, you have three options:
- Submit a different itemized receipt to offset the transaction amount.
- Contact American Fidelity to make a credit card payment.
- Submit a check in the amount of the transaction to be applied to your Healthcare FSA account.
How do I file an LPFSA claim?
- Log in to your online account
- Click the File a Claim button on the top of the page
- Select Reimbursement Account
- Complete the claim form
- Click the Submit button
- Touch the Submit Reimbursement button on the AFmobile dashboard
- Complete the Claim Form
- Click the Submit button
- Fax or Mail
Eligible expenses generally must have been incurred during the current plan year. Log in to your online account or check with your employer for specific rules applicable to your plan.
When will my claim be paid?
Once your claim and all required documentation have been received, the turnaround time for claims processing is generally 5-7 business days.
How will I receive my reimbursement?
The fastest way to receive your reimbursement is through direct deposit. Enroll in direct deposit online by logging in to your online account, navigating to your Reimbursement Account portal, and selecting My Profile. Or, you may also elect to receive a mailed check.
How can I view my balance and transaction history?
You may view your account information at any time by logging in to your online account. From this page you can click on your LPFSA account to review your balance and transaction history.
You can also view your account information from our app, AFmobile®. You will be able to view your account balance from the dashboard, or, click on your reimbursement account to view a complete transaction history.
My transaction is marked resolved. Now what?
If your transaction is marked resolved, you’ve provided eligible documentation or made an out-of-pocket payment. No additional action is needed on resolved transactions.
For additional assistance or to file an LPFSA claim, please log in to your account.