What is a Limited Purpose Flexible Spending Account (FSA)?

If you’re enrolled in Option C under the Medical Plan, you may open a Limited Purpose Flexible Spending Account (LPFSA) to put aside before-tax money to pay for eligible dental and vision expenses (Note: Funds may not be used to pay for medical expenses). The Limited Purpose FSA is administered by Smart Choice.

Who’s Eligible

All U.S. benefits-eligible employees enrolled in Medical Plan Option C.

Eligible Expenses

Use your Limited Purpose FSA to pay deductibles, copays and coinsurance related to dental and vision expenses only. Other eligible health care expenses include eyeglasses, laser eye surgery and orthodontia. For a complete list, see IRS Publication 502.
 

How It Works

Contribute

Choose your contribution amount when you enroll.

In 2024, you can contribute up to $3,200, the IRS annual maximum. (Annual limits for 2024 have not been announced.) You can make changes during the year only if you experience a qualifying life event.

The money will be deducted from your paychecks in equal amounts throughout the year before taxes are calculated.

Pay

Use the Smart Choice debit card to pay at the time of service or purchase, like you would use a debit or credit card. With the Smart Choice debit card, you don’t have to fill out forms or wait for reimbursements. Eligible expenses will automatically be debited from your account.

Spend

2023: Your eligible expenses must be incurred by December 31, 2023, and submitted for reimbursement by April 30, 2024. See below regarding unused 2023 LPFSA funds.

2024: Your eligible expenses must be incurred by December 31, 2024, and submitted for reimbursement by April 30, 2025. See below regarding unused 2024 LPFSA funds.

Roll Over

Any unused funds up to $610 in your 2023 LPFSA may roll over to 2024 as long as you reenroll in an LPFSA for 2024. The rollover funds from 2023 into 2024 must be used by December 31, 2024 (for eligible 2024 expenses) or they will be forfeited.

Important: Carried over 2023 Health Care and Limited Purpose FSA funds will be applied to 2024 eligible expenses after funds you contribute to a 2024 FSA. Additionally, you may carry over 2023 funds only once. That is, at the end of 2024, you may carry over up to $610 of unused 2024 FSA funds; all unused 2023 carryover funds (as well as any used 2024 FSA funds above $610) will be forfeited back to the plan.