Understanding Limited Purpose FSAs

Limited Purpose FSA Save on vision & dental expenses Many employers offer this benefit to help you set aside pre- tax funds for you and your family’s healthcare. Contributing to Contribution limits1 both a Health Savings Account (HSA) and a Limited Purpose LPFSA: $3,300 Flexible Spending Account (LPFSA) takes your savings to the next level⸀਀ HSA: $4,150 (individuals) Sometimes referred to as the “HSA-Compatible FSA,” an $8,300 (families) LPFSA is a tax-advantaged account you can use to pay for eligible vision and dental services. Unlike with a Medical FSA, you can contribute pre-tax dollars to both an LPFSA and an HSA in the same plan year. 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. Employee Eligibility Enrollment Timeframe Eligible Expenses If you are eligible for your You can only enroll and set your Use your LPFSA to pay for employer’s benefits program, annual election amount during eligible vision and dental you are eligible to enroll in an your employer’s open expenses such as dental FSA. You will need to re- enrollment, or on account of a procedures, teeth cleanings, enroll each year. qualifying life event. vision exams, prescription glasses. “ Election amount㨀਀ 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਀㠀 use it or Grace period & carryover㨀਀ Check if your employer offers one of these options to allow you lose it? to incur expenses up to 2.5 months after the plan year ends or “You may have heard this carry up to $640 into the new plan year਀㠀 about the FSA. While the Run-out period㨀਀ funds do eventually expire, Not to be confused with the “grace period,” your employer may don’t let it deter you from also offer this time for you to submit claims for expenses after enrolling! Here are some the plan year ends, for expenses incurred during the plan year. pro tips: 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