Limited Purpose Flexible Spending Account (LPFSA)

A Limited Purpose Flexible Spending Account (LPFSA) allows employees enrolled in an HSA-compatible HDHP to set aside pre-tax dollars for eligible dental and vision expenses while remaining eligible to contribute to an HSA.

2026-2027 Contribution Limits

  • Plan Year: July 1-June 30
  • Claims Deadline: September 30
  • Maximum Contribution: $3,400
  • Carryover: $680

What Expenses Are Eligible?

  • Dental exams and cleanings
  • Dental treatment and orthodontia
  • Vision exams
  • Prescription eyeglasses and contact lenses
  • LASIK and other eligible vision correction procedures
  • Certain preventive care expenses permitted under IRS guidance

Important Limitation

An LPFSA cannot reimburse general medical expenses such as physician office visits, prescriptions, copays, deductibles, or other standard healthcare expenses unless specifically permitted as preventive care under IRS rules. This limitation allows the LPFSA to remain compatible with HSA eligibility.

Enrollment and Changes

Employees must enroll through Employee Navigator during Open Enrollment or within 31 days of becoming benefit-eligible or a qualifying life event. Mid-year changes require a qualifying event.  Benefits are effective the first of the month after enrollment is received.

When Funds Are Available

Your full annual LPFSA election amount is available at the beginning of the plan year, even though payroll deductions occur throughout the year.

Carryover

Unused LPFSA funds may carry over to the next plan year up to the IRS maximum carryover amount.

Use-It-or-Lose-It Rule

Funds exceeding the allowable IRS carryover amount are forfeited if not used by the applicable deadlines.

 

Guides and Plan Documents

FSA Education Guide
FSA Education Guide, Spanish

Flex Benefit Access Visa Card
Flex Benefit Access Visa Card, Spanish

FSA Consumer Portal Quick Start Guide
FSA Consumer Portal Quick Start Guide, Spanish

McGriff Mobile App

Ineligible Expenses
Ineligible Expenses, Spanish