Types of flexible expenses2/13/2024 LP-FSAs can be used in conjunction with an HSA and HDHP. Limited purpose FSA (LP-FSA)Ī limited purpose FSA is similar to a standard FSA, except it can only be used to help cover qualified dental and vision expenses - medical expenses generally aren’t covered.įor 2023, contribution limits for a LP-FSA is $3,050, with a maximum of $5,000 per household or $2,500 for married couples filing separately. Healthcare FSAs can’t be used in conjunction with an HSA or high deductible health plan (HDHP). ![]() Healthcare FSAĪ healthcare FSA is a standard FSA that can be used to help cover medical, dental, and vision expenses.įor 2023, contribution limits for a healthcare FSA are $3,050. Covered expenses, HSA compatibility, and plan details differ depending on the type of FSA you have. These types of accounts suit specific needs, while a healthcare FSA is a general-purpose account. Some employers may offer LP-FSAs and DC-FSAs. However, there are specialty FSAs - i.e., limited purpose FSA (LP-FSA) and dependent care FSA (DC-FSA) - that you can use in conjunction with an HSA. ![]() If you have a health savings account (HSA), you may not be eligible for a general healthcare FSA, because they're used to pay for the same types of medical expenses. Generally, employees don’t need to be enrolled in a health insurance plan to open an FSA. To be eligible for an FSA, you need to work at a company that offers FSAs as part of their employee benefits. COVID-19 PPE (hand sanitizers, wipes, and masks for personal use)įor a complete list of eligible expenses, review Internal Revenue Service (IRS) Publication 502.Here are some examples of qualified, out-of-pocket expenses you can use an FSA for: FSA eligible expensesįSAs can be used to cover the costs of various medical, dental, and vision expenses - as long as they’re qualified. Check with your employer to find out which options they offer. You can use a smart debit card connected to your account, pay providers directly through your online portal, or submit receipts for reimbursement. There are typically three ways to access your FSA money. Employers can also contribute to an employee’s FSA but they aren’t required to do so. ![]() 1 FSA funds can be used to pay for things like deductibles, co-pays, and doctor visits for you, your spouse, and qualifying dependents. How does an FSA work?Ī flexible spending account - or flexible spending arrangement - lets account holders deduct pre-tax money directly from their paychecks to save for qualified healthcare expenses. Learn more about FSAs and how they can help you save and pay for qualified expenses. FSAs are tax-advantaged accounts, which means you can make pre-tax contributions to the account and spend the money tax-free. When it comes to planning for medical costs, there are dedicated accounts available to employees that can help offset some of the costs of healthcare, like flexible spending accounts (FSA).Īn FSA is an employer-sponsored savings account you can use to help make out-of-pocket healthcare expenses more manageable. Saving money for the future is a good way to help protect your financial health and stay prepared.
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