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HC2 - Limited Flexible Spending Account

What is a Limited FSA?
A Healthcare Limited Flexible Spending Account (FSA) is a reimbursement account available through many employers. It allows you to set aside money for healthcare costs from your paycheck before taxes are taken out. The advantage is that you’re spending pretax dollars so you end up paying fewer taxes on your salary and having more to spend. And you can access your entire years’ worth of contributions at the start of your company’s plan year. Expenses reimbursed by a limited health care FSA are limited before you reach your plan's deductible. After you reach your deductible, the limited FSA may work like a traditional health care FSA, depending on your employer’s plan.

After you meet your health plan's deductible:
You may get reimbursed for all FSA-qualified health care expenses, depending on your employer’s plan. That's right. Meet your deductible, and your limited health care FSA may work like a standard health care FSA. Your after-deductible reimbursements may not be limited to dental and vision.

All expenses must be qualified medical, vision, pharmacy or dental benefit expenses as defined in Section 213(d) of the Internal Revenue Code.

The Limited Purpose Flexible Spending Account for HSAs
For small and mid-sized organizations that have -- or are considering -- a health savings account for their workforce, Limited Purpose Flexible Spending Account is Generally used in conjunction with a health savings account (HSA), a Limited Purpose Flexible Spending Account is a tax savings account that reimburses employees for eligible dental and vision care expenses.

 

Limited to the following expenses:
* Eyeglasses
* LASIK Surgery
* Dental
* Orthodontia Work
* Contact Lenses and Cleaning Solutions