A limited-purpose flexible spending account (FSA) lets you use pre-tax dollars for dental and vision costs💦, helping to maximize your savings on health care costs. You choose a yearly contr♛ibution amount that comes out of each paycheck. A limited-purpose FSA differs from a traditional FSA because the latter can be used for more medical expenses. But in both cases, the government won’t tax your contributions.

What Is a Limited-Purpose FSA?

A 澳洲幸运5开奖号码历史查询:limited-purpose FSA allows you to set aside money𝕴 from your paycheck before ta🐟xes for dental and vision expenses throughout the year. 

A limited-purpose FSA is designed to work with a 澳洲幸运5开奖号码历史查询:high-deductible health plan (HDHP) and a 澳洲幸运5开奖号码历史查询:health savings account (HSA). 

A 澳洲幸运5开奖号码历史查询:standard health care FSA reimburses you for medical, dental, and vision expenses. A limited-purpose FSA only covers dental and vision services. 

You can get reimburs𒀰ement from your limited-purpose FSA for qualified expenses generated by you, your spouse, and your eligible dependents.

The IRS may increase the annual contribution limits for limited-purpose flexible spending accounts from one year to the next. In 2025, the maximum contribution limit is $3,300. 

Limited-Purpose FSA Eligible Expenses

In general, you can use your limited-purpose FSA for dental and vision costs, and also for travel expenses related to those treatments.

Here is a list of de🧜ntal services your limited-purpose FSA will reimb🌠urse you for:

• Dental X-rays and cleanings
• Tooth sealants
• Fillings and crowns
• Orthodontic services
• Dental implants
• Dentures
• Occlusal guards
• Dental coinsurance, copays, and deductibles

Eligible vision services include:

• Vision examinations
• Prescription eyeglasses, contact lenses, and sunglasses
• Over-the-counter reading glasses
• Eye patches
• Lens wipes and eyeglass repair kits
• Over-the-counter eye drops
• Lasik eye surgery
• Vision coinsurance, copay, and deductible

Your limited-pur𝓀pose FSA will cover your mileage and other transportation costs (e.g., taxis, buses, rideshare, parking⛄) to and from vision and dental appointments.

🐓 What Are the Rules for Limited-Purpose FSAs and HSAs? 

The IRS has different rules for HSAs and FSAs, and limited-purpose FSAs have their own rules compared to regular FSAs. 

IRS Rules for HSAs

An HSA lets you 澳洲幸运5开奖号码历史查询:put money in before taxes, and your job can contribute as well. You won’t pay taxes on those contributions. Any interest you earn is tax-free, as are distributions you use to pay for eligible medical expenses. 

Health savings accounts are portable: You can take them with you after leaving your employer. The funds remain in your account until you use them. You can roll over funds to a new HSA when changing employers without being taxed.

IRS Rules for FSAs

Both you and your employer can contribute to your FꦍSA. 

Unlike HSAs, FSAs aren’t portable, which means you forfeit the funds when you leave your employer. 

While FSA funds generally expire at the end of the year, you can roll over up to $660 for the following year, depending on your plan. Alternatively, employers may give you a 2.5-month 澳洲幸运5开奖号码历史查询:grace period. 

While FSAs can be used for any eligible health care expense, limited-purpose FSAs can only be used for eligible vision and dental expenses. You also can’t have a general-purpose FSA if you have an HSA, although you𓆉 can have both an HSA and a limited-purpose FSA.

Maximizing the Benefits of a Limited-Purpo👍se FSA

Careful planning and under🐼standing the rules for limited-purpose FSAs and HSAs can help boost your health care savin🎶gs. 

Planning for Vision and Dental Expenses

We’ve put together the following tips to help you optimize the potential o♉f your limited-purpose FSA.

• Record your vision and dental expenses for the past year, and anticipate whether your needs will change or remain the same. 
• Keep a spreadsheet recording your vision and dental expenses. This information will help you decide whether to schedule an appointment now or delay it until the following year. 
• Set up automatic calendar reminders to help you monitor your account. Many plans offer mobile apps so you can view your balance at a glance.
• Schedule dental and vision appointments that qualify for reimbursement by year-end to use up excess funds. 
• Use your limited-purpose FSA for eyewear and regular vision and dental checkups, and reserve the funds in your HSA for larger, unexpected medical costs. 

If your limited-purpose FSA’s funds don’t 澳洲幸运5开奖号码历史查询:roll over, your plan may offer a grace period that gives you extra time to spend your funds on eligible health care services that you receive after the close of the year. If possible, use up your funds so you ꧟don’t lose them. 

How to Access Limited-Purpose FSA Funds

With both general-purpose and limited-purpose FSAs, you can either pay for your product or serv﷽ice yourself and get the money back from your FSA, or pay directly from your FSA account. 

Depending 𝄹on your plan, you can upload your receipts into a portal or mobile app.

Some plans provide you with a debit, credit, or stored-value card you can use to pay during purchase or service. Other options are check, direct deposit, or payment to the provider.

You can claim allowable expenses your spouse or dependents incur even if they’re not covered by your health plan.

Unfortunately, you don’t get a refund for any money you leave in your limited-purpose FSA that you don’t use unless a carry-over rule applies.

Limited-purpo༒se FSA plans don’t always automatically renew, so you’ll have to re-enroll in a new plan during the open enrol꧒lment period each year.

The Bottom Line

A limited-purpose FSA isꦰ a tax-advantaged account for dental and vision expenses that works with an HDHP and HSA. Typically, these accounts follow a u🌌se-it-or-lose-it rule, though some plans allow limited rollovers. Plan your expenses carefully to maximize benefits and avoid forfeiting funds.