Flexible Spending Accounts
Health Flexible Spending Account (HFSA) and Limited Purpose Flexible Spending Account (LPFSA)
Set funds aside for medical expenses—tax-free
Health and Limited Purpose Flexible Spending Accounts (FSAs), administered by VitaFlex, let you set aside tax-free money to pay for health care expenses you expect to have over the coming year.
You can use the funds to pay at the time of service or reimburse yourself. Keep in mind that you are not eligible for a Health FSA plan if you are enrolled in an HSA, but you can enroll in a Limited Purpose FSA and use the funds to pay for (eligible) dental and vision expenses.
How it works
Health FSA
- Estimate your and your family’s out-of-pocket costs for the coming year. Think about what you expect to pay for office visits, surgery, dental and vision expenses, prescriptions, over-the-counter medications. Then set aside pre-tax dollars to pay for those eligible expenses throughout the year.
- Be a good planner: at year-end, you can only roll over up to $640. Any additional funds will be forfeited.
- You cannot participate if you (or your spouse) are enrolled in an HSA-eligible medical plan.
- You must enroll and make new elections annually.
Limited Purpose FSA
- Money is set aside from your paycheck before taxes are taken out. You can use FSA dollars to pay for eligible vision or dental expenses and save money on expenses you’ve already paid for within the plan year like dental checkups, vision exams, and eyeglasses.
- Be a good planner: you can only roll over to the following year up to $640. Any additional funds will be forfeited.
- The Limited Purpose FSA is available if you (or your spouse) are enrolled in an HSA-eligible medical plan.
- You must enroll and make new elections annually.
