What are the 2022 Limited Purpose FSA?
The Limited Purpose FSA allows you to set aside money from your paycheck on a pretax basis to pay for out-of-pocket dental and vision costs like glasses, contact lenses and solution, dentures, dental copays, orthodontia, and more (See eligible expenses).
Can Limited FSA carry over to next year?
If your limited-purpose FSA has a carryover feature, you may carry over up to $500 of unused funds into the next plan year. The $500 maximum carryover limit was set by the IRS, but your employer may decide to have a lesser amount – check your SPD.
What is a limited scope FSA?
A Limited Purpose FSA is a Flexible Spending Account (FSA) that is compatible with a Health Savings Account (HSA). If you’re enrolled in a qualified high-deductible health plan and have an HSA, you can maximize your savings by pairing your HSA with a Limited Purpose Flexible Spending Account (FSA).
Can you elect a limited purpose FSA without an HSA?
Who Is Eligible for a Limited Purpose FSA. To establish an LPFSA, you must be enrolled in both a High Deductible Health Plan (HDHP) and an HSA.
How much of my 2021 FSA can I roll over to 2022?
$570
2022 Health FSA Contribution Cap Rises to $2,850
| Health Flexible Spending Accounts (Includes limited-purpose FSAs) | 2022 | Change |
|---|---|---|
| Maximum carryover amount *The Consolidated Appropriations Act, 2021, allowed unlimited carryovers of health FSA balances into the next plan year for plan year 2021. | $570 | +20 (indexed amount) |
Has IRS released 2022 FSA limits?
In Revenue Procedure 2021-45, the IRS confirmed that for plan years beginning on or after Jan. 1, 2022, the contribution limit for health FSAs will increase to $2,850. For those plans that allow a rollover of unused funds, the maximum rollover amount will increase by $20 to $570 for 2022.
What is the difference between FSA and limited FSA?
A Medical FSA can be used to pay for your out-of-pocket expenses related to medical care, dental care and vision. A Limited FSA can only be used to pay for your out-of-pocket expenses related to dental and vision. In other words, the Limited Purpose FSA is limited to paying for those two types of expenses.
What can I pay for with a limited purpose FSA?
A Limited Purpose Flexible Spending Account (LPFSA) is a pre-tax benefit used to pay for eligible dental, vision care and post-deductible medical expenses for participants enrolled in a High Deductible Health Plan (HDHP).
What is eligible for Limited Purpose FSA?
An eligible expense is a dental or vision service, treatment or item the IRS states can be paid for without taxes. After you meet your health plan’s deductible, you may be reimbursed for all eligible medical expenses, such as copayments, physical exams and vaccinations.