Limited Purpose FSA Frequently Asked Questions
What is a Limited Purpose FSA (LPFSA)?
An LPFSA is a type of Flexible Spending Account available to ABB employees who own a Health Savings Account (HSA). Account holders can use an LPFSA to pay for qualified vision and dental expenses for themselves and their dependents.
How is an LPFSA different than an FSA?
A ‘general purpose’ or 'full' FSA can be used for a long list of IRS-approved expenses, including prescriptions, co-pays, dental treatments, vision care, and other medical needs. But HSA account owners are not eligible to also have a full FSA at the same time.
An LPFSA works just like a general purpose FSA except that it can only be used for eligible dental and vision expenses. HSA account owners are allowed to have both an HSA and an LPFSA at the same time.
What are the annual contribution limits for an LPFSA?
Just like with a general purpose FSA, qualified ABB employees can contribute up to $2,650 each year to an LPFSA. Also just like an FSA, the funds in an LPFSA expire at the end of the plan year. It is important for account holders to make an accurate estimate of their eligible vision and dental expenses to avoid losing any unused funds.
What types of out-of-pocket expenses are covered by an LPFSA?
An LPFSA can only be used for eligible dental and vision expenses. Commonly reimbursed expenses include:
- Dental Exams and Cleanings
- Fillings and Root Canals
- Crowns and Bridges
- Braces and Retainers
- Eye Exams
- Eyeglasses and Contact Lenses
- Vision Correction Procedures (e.g. LASIK)
How can I enroll in an LPFSA?
You can enroll or renew your election in an LPFSA during the annual ABB open enrollment period. Talk with your Human Resources (HR) representative to find out when your next enrollment period will take place.