What is a Limited FSA (LFSA)?
Some employers offer both an FSA and a health savings account (HSA) If you are enrolled in an HSA, you might also be able to enroll in an LFSA. An LFSA is similar to a regular FSA in that it lets you set aside money on a pre-tax basis for healthcare expenses. However, it is limited to dental and vision expenses so that it complies with HSA requirements.
Should I enroll in a Limited FSA?
If you expect to have dental and vision expenses, you should consider an LFSA. Please note that unspent funds in an LFSA are lost at the end of the year; they do not rollover into the next year. You should consider this before enrolling in an LFSA. You can use the FSA calculator to estimate your dental and vision expenses.