How does an LPFSA work?
What is an LPFSA?
A limited purpose flexible spending account (LPFSA) allows you to contribute a portion of your paycheck, before taxes, to pay for qualified vision and dental expenses.
What does an LPFSA Cover?
The LPFSA covers eligible vision and dental expenses for you and your dependents. Consult your tax professional for more information on those individuals that may qualify as dependents for purposes of the LPFSA.
What are the benefits of an LPFSA?
Benefits
An LPFSA allows you to continue to contribute to a Health Savings Account (HSA) while also contributing to an LPFSA for vision and dental expenses. This additional pre-tax deduction helps you maximize your tax savings beyond your HSA alone.
What expenses are considered eligible?
Eligible Dental Expense Examples
- Cleaning
- Fillings
- Crowns
- Braces
Eligible Vision Expense Examples
- Contact lenses
- Eyeglasses
- Eye exams
- Vision correction procedures
Contact your employer for a detailed list of qualified medical expenses.
How can I contribute to my LPFSA account?
Contributions
Your employer determines the amount you may elect to contribute to our LPFSA up to the IRS maximum of $2,650 for 2018. Your contribution is deducted from your paycheck by your employer throughout the year on a pre-tax basis and is deposited to your LPFSA. Your employer may also contribute to your LPFSA.
Adjusting Contributions
Under IRS rules, elections can only be changed mid-year if you experience a change in status such as marriage, divorce, birth, or death. Check your employer’s plan for more detail.
How do I access my LPFSA funds?
Payment Options
You are able to pay directly from your account using a benefits debit card. It can be used anywhere debit cards are accepted. You may also use online bill payment to pay for expenses or to submit a claim to reimburse yourself for a qualified out-of-pocket medical expense. If you pay for medical expenses out of pocket, you’ll need to file an LPFSA reimbursement claim.
Funds Availability
With an LPFSA, your entire annual election amount is available on the first day of the plan year even though you have not yet contributed that amount.
Claim Submission Deadlines
You can submit claims for reimbursement at any time during the same plan year that you incur the expense. There is typically a grace period after the end of each year. Check with your employer to confirm claim submission deadlines and carryover options that may be available to you.
