A Limited Purpose FSA is a tax-advantaged account for employees with high-deductible health plans, restricted to dental and vision expenses, complementing an HSA.
- What is a limited purpose FSA?
Answer: It is an account for dental and vision expenses with a high-deductible plan. - Who can use it?
Answer: Employees with HSAs can use it for specific expenses. - What is the contribution limit?
Answer: The 2025 limit is approximately $3,050, shared with other FSAs (subject to IRS updates). - What are the benefits?
Answer: It reduces out-of-pocket costs for covered services. - How is it managed?
Answer: It is managed through payroll and an FSA provider.
