A Limited Expense Flexible Spending Account is another type of pretax health account.
Only certain medical expenses are covered through a Limited Expense FSA unlike with a regular Health Care FSA. You are allowed to have a Limited Expense FSA if you have a Health Savings Account.
The Limited Expense FSA applies the same “use it or lose it” rule as the regular FSA does, so all funds must be used before the plan year ends. The maximum annual contribution is set to $2,500 for a Limited Care FSA for plan years beginning on or after Jan. 1, 2013. However, the contribution limit is on a per-person basis, so you and your spouse would both be able to elect $2,500. Check in with your employer about your plan’s limits and consult your Summary Plan Description for additional information.
Which care qualifies for a Limited Expense FSA?
- Dental Care
- Vision Care
- Preventive Care
Examples of covered dental/vision procedures and products include:
- Braces, exams, fillings, crowns, and cleanings.
- LASIK, multipurpose contact lens solutions, and eyeglasses.
Preventive care* could entail:
- Flu shots, child and adult immunizations.
- Periodic health exams (annual physicals).
- Tobacco cessation programs.
- Weight-loss programs.
- Certain screening devices and services.
- Routine prenatal and well-child care.
- Prescription OTC drugs (must be vision, dental or preventive).
- FSA eligible products (must be vision, dental or preventive).
*Preventive care does not generally include services intended to treat existing illnesses or injuries. Preventive care applies in situations where it is unreasonable or impracticable to perform other procedures to treat a condition. Using medications is part of preventive care when people developed risk factors of a disease or prevent reoccurrences of a disease. For example, taking cholesterol-lowering medications to prevent heart disease.
Browse the FSAstore.com Learning Center for extra information about Flexible Spending Accounts.