Department of Management Services

Limited Purpose FSA

What is a Limited Purpose FSA?

It is a type of savings and spending / flexible spending account that allows you to reimburse yourself for dental, vision and preventive care expenses not covered by your high deductible health plan. 

How It Works

You can use the Limited Purpose FSA to cover eligible healthcare expenses not covered by your dental and vision plans when you are enrolled in a High Deductible Health Plan. When you use this account, you don’t pay federal income taxes on the money in your account.

You can set aside $60 to $2,650 each year to cover eligible expenses during the year. Your contributions come out of your pre-tax pay in equal installments each pay period. Use the tax savings calculator to help you evaluate the tax savings and decide whether to participate.

Be sure to review the Benny®prepaid benefits  card page and frequently asked questions (Adobe PDF Document 194.72 KB).

Some Eligible Expenses Some Expenses Not Eligible

Money can be set aside for:

  • Dental and vision plan deductibles
  • Dental and vision care expenses
  • Orthodontia not covered by a dental plan
  • Over-the-counter medications (doctor’s prescription required to be eligible for reimbursement)

The IRS lists these non-eligible expenses:

  • Health services and supplies, including prescription drugs, that are considered covered services under your state health plan, if you are enrolled in a high deductible health plan and a Health Savings Account
  • Your contributions for outside health or life insurance
  • Employer health premiums of any kind
  • Procedures or expenses not medically necessary
  • Weight loss programs not prescribed by a doctor