Limited Purpose FSA
What is it?
Limited Purpose Flexible Spending Account (LPFSA) are tax-advantaged accounts that let you use pre-tax dollars to pay for eligible dental and vision expenses .
What are the advantages?
You can pair a LPFSA with an HSA and pay for thousands of eligible dental and vision expenses.
HSAs let you save pre-tax dollars for future qualified medical expenses. Like a traditional healthcare FSA, your HSA lets you pay for thousands of qualified medical expenses, including dental and vision expenses.
However, since the LPFSA is an HSA-compatible account, some members elect both the HSA and LPFSA benefit options and then claim all their eligible dental and vision expenses through the LPFSA. This lets you save more money in your HSA for long-term investing and future qualified medical expenses.
Things to keep in mind
In most cases, HSA contributions are only available as you make contributions. Brandeis offers an employer contribution for electing a high-deductible health plan, that money is available on the first day of the plan year. For new hires/newly eligible prorated funds are available first of the month following election.
HSA funds are yours to keep forever but the Limited Purpose FSA is a "use it or lose it" plan, with a carryover. Expenses for the plan year must be incurred in the plan year. For any funds you don't have a claim for by the end of the plan year(12/31/25), only $660 may be carried into the new year 2026 for use in the new year 2026. You cannot use that $660 to pay for services that happened in 2025.
Internal Revenue Service (IRS) rules clarify that you can’t contribute to a Health Savings Account (HSA) and a Health Care Flexible Spending Account (HCFSA) in the same plan year. That's double dipping!
Using Funds
- Funds can be used for out-of-pocket expenses for dental care including orthodontia and vision care, such as eye exams, eyewear, laser eye surgery and much more.
- Debit card is provided for point-of-sale transactions. Itemized receipts required for claim verification.
- Full amount of election is available on effective date.
- Carryover option at the end of the plan year. Funds not used with no claims on 12/31 of the plan year may carryover a limited amount of the funds up to the max (employer allowed) for use in the new plan year. Amounts over the limit are forfeit.
- Can only elect this account if enrolled in an HSA-eligible plan.
Contribution Limit
- Annual Limit: $3,300 for 2025 calendar year
- Carryover Limit: $660 into 2026 calendar year
- Individual maximum: Employee and spouse may each contribute up to max (employer allowed)