Guide to Limited Purpose FSA

Many employers offer this benefit to help you set aside pre-tax dollars for you and your family’s healthcare. Contributing to both a Health Savings Account (HSA) and a Limited Purpose Flexible Spending Account (LPFSA) takes savings to the next level. Sometimes referred to as the “HSA-Compatible” FSA, an LPFSA is a tax-advantaged account you can use to pay for eligible vision and dental services. Unlike a Medical FSA, you can contribute pre- tax dollars to both an LPFSA and an HSA in the same plan year. Limited Purpose FSA Save on vision & dental expenses LPFSA: HSA: Contribution limits1 $3,300 $4,300 (individuals) $8,550 (families) How it works The funds are deducted directly from your payroll, and you can save up to 35%2 on vision and dental expenses when you pay with them. Used alongside your High-Deductible Health Plan (HDHP) and HSA, it’s a smart and convenient way to take care of your health and finances. Use your LPFSA to pay for eligible vision and dental expenses such as dental procedures, teeth cleanings, vision exams, prescription glasses. Eligible Expenses You can only enroll and set your annual election amount during your employer’s open enrollment, or on account of a qualifying life event. Enrollment Timeframe If you are eligible for your employer’s benefits program, you are eligible to enroll in an FSA. You will need to re- enroll each year. Employee Eligibility “ “ use it lose it? or You may have heard this about the FSA. While the funds do eventually expire, don’t let it deter you from enrolling! Here are some pro tips: Election amount: Don’t default to contributing the maximum amount. Take time to assess how much you spent last year and anticipate what you might need this coming year. Grace period & carryover: Check if your employer offers one of these options to allow you to incur expenses up to 2.5 months after the plan year ends or carry up to $660 into the new plan year. Run-out period: Not to be confused with the “grace period,” your employer may also offer this time for you to submit claims for expenses after the plan year ends, for expenses incurred during the plan year. Knowing these plan options and key dates will make it easier to get the most out of your FSA, and ensure you are not left with forfeited dollars. livelyme.com | 1.888.576.4837 | support@livelyme.com