Limited Purpose Flexible Spending Account
Use pre-tax dollars to pay for qualified dental and vision expenses.
A Limited Purpose Flexible Savings Account is available if you are enrolled in a high deductible health plan. It isn’t specifically linked to a health plan and it allows you to deduct dollars from your paycheck and deposit it into an employer-sponsored account. Limited Purpose FSAs are exempt from federal income taxes, Social Security (FICA) taxes and, in most cases, state income taxes. The money can be used for eligible vision and dental expenses that are incurred while you are participating in the plan.
What are the benefits of a Limited Purpose FSA?
- A Limited Purpose Flexible Spending Account (FSA) is an employer sponsored account that can be used to pay eligible dental and vision expenses when you are enrolled in a High Deductible Health Plan (HDHP) and HSA. Choose a Limited Purpose FSA if you’d like to let the funds in your HSA grow, while still using pre-tax dollars to pay for eligible expenses incurred while you’re participating in the plan.
- Enjoy potential tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified expenses. Estimate how much you can save with an FSA with this calculator.
- Quickly and easily access funds using the debit card at the register, or request to have funds deposited directly into your bank account through the website or mobile app.
- Makes reimbursement for expenses easy – the full amount you set aside is available on your first day of coverage.
Additional details
Using a Limited Purpose FSA along with your HSA is a creative way of helping to expand your tax benefits. Money is set aside from your paycheck before taxes are taken out. You can then use your pre-tax Limited Purpose FSA dollars to pay for eligible vision or dental expenses throughout the plan year. The amount of your pay that goes into a Limited Purpose FSA will not count as taxable income, so you can have immediate tax savings. If you don’t want an HSA, you could elect a health FSA instead of the Limited Purpose FSA.Download our mobile app today to manage your account
- Apple: VYA Apple Mobile
- Android: VYA Google Play Mobile
What is a Limited Purpose Flex Spending Account (FSA)?
A Limited Purpose Flexible Savings Account is available if you are enrolled in a high deductible health plan. It isn’t specifically linked to a health plan and it allows you to deduct dollars from your paycheck and deposit it into an employer-sponsored account. Limited Purpose FSAs are exempt from federal income taxes, Social Security (FICA) taxes and, in most cases, state income taxes. The money can be used for eligible vision and dental expenses that are incurred while you are participating in the plan.
What are the current IRS contribution limits for FSAs?
The IRS sets contribution limits annually. The 2024 maximum annual FSA contribution limits are as follows: Limited Purpose FSA - $3,200.
Will my FSA funds rollover at the end of the year?
Health FSAs are use-it-or-lose-it plans. Some FSAs offer a rollover feature that allows you to roll over up to $610 of unused FSA funds into the following plan year. Check to see if your employer offers this option. It’s important to plan accurately when selecting your contribution amount(s) and to ensure you know if your FSA plan allows a rollover.
Can I use my FSA to pay for medical expenses for a spouse or dependent?
Yes, you may use your FSA funds without penalty to pay for qualified medical expenses for yourself, spouse, or dependent even if they are covered under another health plan. Please consult a qualified tax advisor for advice.
Who qualifies as a dependent?
A person generally qualifies as your dependent for FSA purposes if you claim them as an exemption on your Federal tax return, even if they are covered under another health plan. Please see IRS Publication 502; for exceptions. Consult a qualified tax advisor for guidance.
Once I request reimbursement, how long does it take for my funds to be available?
In general, if you have a bank account linked to your account this can take as little as 3 business days for the reimbursement to be posted. However, a check can take up to 7 business days to arrive. Reimbursement is dependent on if the claim documentation is approved for FSA and Commuter accounts.
What do I do if my debit card declines or doesn’t work?
Ensure you have activated the card and have logged into the online portal to accept your terms and conditions. Within your profile, confirm you have the correct and most recent card by verifying the last four digits. Check your balance and verify via your activity that there are no pending transactions you have not accounted for. If you are using the card at a retail pharmacy, ensure the item is coded as FSA eligible. Still unable to determine the cause? Contact the Voya Health Account Services team at (833) 232-4673 or [email protected]. to verify the cause and best solution.
iPhone and the App Store are trademarks of Apple Inc., registered in the U.S. and other countries. Android and Google Play is a trademark of Google Inc.
Flexible Spending Accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC).
This highlights some of the benefits of a Flexible Spending Account. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and its subcontractors reserve the right to amend or modify the services at any time.
The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will affect tax savings. None of the information provided should be considered tax or legal advice.
