Limited Purpose FSA

2020 and 2021 Plan Year Information

What is a Limited Purpose Flexible Spending Account (FSA)?

A Limited Purpose FSA allows you to put aside before-tax money to pay for eligible dental and vision expenses if you are enrolled in Option C under the Medical Plan. Use your Limited Purpose FSA to pay deductibles, copays and coinsurance related to dental and vision expenses only. Other eligible health care expenses include eyeglasses, laser eye surgery and orthodontia. For a complete list, see IRS Publication 502. The Limited Purpose FSA is administered by Your Spending Account (YSA).

For 2021: Contribute up to the IRS maximum of $2,750.

To pay for eligible Limited Purpose FSA expenses, use the Smart YSA debit card to pay at the time of service or purchase, like you would use a debit or credit card. With the YSA debit card, you don’t have to fill out forms or wait for reimbursements. Eligible expenses will automatically be debited from the correct account—either the HSA or the Limited Purpose FSA—depending on which account the purchase is eligible for.

  • For 2020: Eligible Limited Purpose FSA expenses must be incurred by December 31, 2020, and submitted for reimbursement by April 30, 2021.
  • For 2021: Eligible Limited Purpose FSA expenses must be incurred by December 31, 2021, and submitted for reimbursement by April 30, 2022.

Use it or lose it: By law, any amount in your Limited Purpose FSA that is not timely claimed by you must be forfeited. Estimate your projected dental and vision expenses and potential tax-savings with the FSA Calculator on the Benefit Center website.

Benefits in Brief

Maximize your health care dollars by pairing a Health Savings Account (HSA) with a Limited Purpose FSA. Use your Limited Purpose FSA to save an average of 30% on dental and vision costs only.

  • Use before-tax dollars to pay for dental and vision expenses including eyeglasses, laser eye surgery, orthodontia and more.*
  • Your full-year contributions are pre-funded and available January 1.
  • Unlike an HSA or Health Care FSA, all funds are “use it or lose it” within a calendar year so be sure to estimate your anticipated dental and vision expenses.

* If you have elected Medical Plan Option A or B, you may contribute to a Health Care FSA to pay for medical, dental and vision costs.