Given that individuals are unable to contribute to a HSA while covered by a regular Medical FSA, some employers also provide a Limited Purpose FSA option. The Limited Purpose FSA covers dental and vision expenses only. Given this limited scope, IRS guidelines allow individuals to contribute to a HSA and be covered by a Limited Purpose FSA simultaneously.
If your plan does not currently offer the Limited Purpose option and you would like to start, a plan amendment is required. Please contact your account manager for additional information.
The annual election limit for Limited Purpose FSA mirrors that of your regular Medical FSA. The maximum amount is stated in your plan document and may not exceed $2,700 (2019 limit). Your plan document may elect to increase automatically every year for cost-of-living increases as determined by the IRS.
Examples of eligible dental and vision expenses:
- Crowns (non-cosmetic)
- Dentures and care products
- Exams and teeth cleaning
- Gum treatment
- Occlusal guards
- Oral surgery
- Root canals
- Artificial eyes
- Contact lenses & cleaning solutions
- Eye examinations
- Eye surgery
- Laser eye surgery/LASIK
- Prescription sunglasses
- Seeing eye dog and its upkeep
**Any procedure processed through insurance and applied as a medical expense is ineligible under Limited Purpose FSA.