If you’re enrolled in a qualified high-deductible health plan (HDHP) and have a Health Savings Account (HSA), you can maximize your savings with an HSA-compatible Limited Purpose Flexible Spending Account (LPFSA).
Read on to find out how to use your LPFSA funds, or jump to a section with these links:
What is an LPFSA?
A Limited Purpose Flexible Spending Account (LPFSA) works with an HSA to maximize your savings.
This pre-tax benefit account helps you save on this plan year’s eligible out-of-pocket dental and vision expenses while taking advantage of the long-term savings power of an HSA.
You decide how much to contribute to your LPFSA, and contributions are automatically deducted from each paycheck on a pre-tax basis.
The total amount you elect to contribute to your LPFSA each year is available on the first day of the plan year.
LPFSA eligible expenses
You can use your Limited Purpose Flexible Spending Account (LPFSA) to pay for eligible dental and vision care expenses for yourself and your eligible dependents, as defined by the IRS.
The Internal Revenue Service (IRS) determines which expenses are eligible for reimbursement. You can view a list of eligible expenses by logging in to your account.
Search LPFSA eligible expenses.
How is a Limited Purpose FSA funded?
You fund your LPFSA through your employer. During your company's Open Enrollment period, you can choose the amount you’d like to contribute for the upcoming year. The maximum amount you can contribute is determined by the IRS. Your employer then deducts your contribution amount in equal portions from your paychecks throughout the plan year.
You don't have to wait for funds to build up in your LPFSA. Your entire annual election amount is available to you on the first day of the plan year.
Who can use my LPFSA funds?
Your LPFSA covers eligible dental and vision care expenses for you and your eligible dependents.
Eligible dependents include your spouse, children under the age of 26, and children over age 26 who are tax dependents.
Domestic partners may be eligible if they qualify as tax dependents.
LPFSA maximum yearly contribution limits
The IRS sets the annual contribution limits for Health Savings Account (HSA)-compatible or Limited Purpose Flexible Spending Accounts (LPFSAs).
You can contribute up to $3,300 in 2025 and $3,400 in 2026 for your eligible Limited Purpose FSA dental and vision care expenses.
Note: A different contribution limit may apply to you according to your employer’s plan design.
How do I calculate my LPFSA tax savings?
An LPFSA lets you pay for eligible dental and vision care expenses on a pre-tax basis. FSAs are never taxed at a federal income tax level when used appropriately for eligible healthcare expenses. Also, most states recognize FSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.
The money you contribute to a Limited Purpose FSA (LPFSA) is not subject to payroll taxes, which may reduce your taxable income and increase your take-home pay. Actual tax savings will vary based on your income and tax situation.
Use this calculator to estimate your annual eligible dental and vision care expenses and determine an annual election amount that’s right for you and your family.