LPFSA eligibility requirements
LPFSAs work with any type of health insurance, the only requirement is that you must access an LPFSA through your employer. If you are married and both you and your spouse are offered FSAs through your employers, both of you may contribute to separate FSAs up to the annual limit.
You can only enroll and set your annual election amount during open enrollment, or on account of a qualifying life event.
Why have an LPFSA?
- They are a tax-free way to pay for qualified vision and dental expenses. You can save up to 37% on your dental and vision expenses (depending on your tax bracket).
- It can be paired with any type of health insurance. This enables you to build the best benefits package for you and your family.
- HSA compatible and enable you to save and invest more of your HSA dollars.
2025 LPFSA contribution limits
The IRS annual limit for 2025 employee contributions to a Limited Purpose FSA is $3,300 regardless of whether they’re enrolled in an individual health insurance plan or a family plan.
If both spouses have access to an FSA through their employers, both can contribute up to the annual max.
Employers can contribute up to $500 to employee LPFSAs regardless of whether or not the employee contributes any money. Starting at $501, employers can only match up to dollar-for-dollar of employee contributions. Employer contributions to Healthcare FSAs are not counted towards employee annual contribution limits.
