LPFSA + HSA: Paired Accounts for Maximum Savings

LPFSA + HSA Paired Accounts for Maximum Savings Considering a Limited Purpose Flexible Spending Account (LPFSA) but not sure how it works with a Health Savings Account (HSA)? It’s not as confusing as it might seem. Here’s what you need to know to get the most out of your healthcare accounts. The LPSFA and the HSA uniquely complement each other because one is a short-term spending account and the other is a long-term saving account. By enrolling in both simultaneously, you have the opportunity to maximize HSA contributions while reducing out-of-pocket expenses by paying with LPFSA funds. No other healthcare accounts can be paired like this. Vision & Dental HSA-Compatible LPFSAs are a specific type of FSA While you can have an LPFSA that can be used to pay for eligible without also having an HSA, the vision and dental expenses with LPFSA is specifically designed to pre-tax dollars. Check the full list pair with an HSA so you can save at livelyme.com/whats-eligible. and spend tax-free in parallel. FSA Rules Apply Converts to FSA Like Medical FSAs, LPFSAs are Once the health plan deductible employer-owned accounts and has been met, the LPFSA converts funds expire at the end of the plan to a Medical FSA and can be used year. Funds are elected annually for other eligible expenses in and available on day 1 of the plan. addition to vision and dental.* Pro tips for the • Enroll in an LPFSA only if you plan to contribute the annual savvy account holder: maximum to your HSA in the same tax year. • Pay for eligible vision and dental expenses with LPFSA funds first so you can save and grow your HSA funds. • Estimate your vision and dental expenses and set your election amount accordingly so you are not le昀܀ with forefeited dollars. • Reach out to mailto:supportLively Support or visit livelyme.com/blog to learn more about using your healthcare accounts. @livelyme.com The content presented in this document are for informational purposes only, and is not, and must not be considered investment, legal, accounting, or financial planning advice, nor a recommendation as to a specific course of action. *May vary by employer. Refer to your plan documents for comprehensive details. livelyme.com support@livelyme.com 1.888.576.4837