Flexible Spending Account (FSA) & LPFSA (Limited Purpose)
What is an FSA?
A Medical FSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for Medical/Dental/Vision expenses. This saves you money by reducing your taxable income. You elect to have your annual contribution (up to $3,300 *2025 IRS limit* ) deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified. FSA dollars can be used during the plan year to pay for qualified expenses and services. Your annual election is made available to you UP FRONT on the first day of your plan year/eligibility.
What does it cover (some examples)?
- Copays and coinsurance
- Doctor visits and surgeries
- Over-the-counter medications (first-aid, allergy, asthma, cold/flu, heartburn, etc.)
- Prescription drugs
- Birthing and Lamaze classes
- Dental and orthodontia
- Frames, contacts, prescription sunglasses, etc.
AND MUCH MORE! *Visit the FSA Store to see an extensive list of eligible items*
WHAT IS AN LPFSA ?
A Limited Purpose FSA is a benefit that allows you to set aside funds from your paycheck pre-tax, for qualified Dental, Vision, and Preventative Care expenses ONLY. Your annual election is made available to you UP FRONT on the first day of your plan year/eligibility for use on eligible expenses. NOTE: A Limited Purpose Medical FSA works with a qualified high deductible health plan (HDHP) and Health Savings Account (HSA).
Please note, you cannot make an FSA/LPFSA election change mid-year unless you experience a Qualifying Event. Some Qualifying Event examples would be:
- Change in marital status
- Change in the number of dependents (Birth, Adoption, Marriage, Divorce, etc.)
- Gain/loss of eligibility due to a change in participant/spouse/dependent employment status
- Judgement, decree or order requiring a change in coverage
**Please check with your Employer and/or Keystone to see what plans are offered**
It's not ALWAYS a "USE it or LOSE it" plan!
GRACE PERIOD Plan Option
A grace period extends the period of time you have to use your FSA funds on eligible expenses. Think of it as a safety net for your FSA. If you end up spending less than you anticipated when you made your elections during open enrollment, you can tap into those funds for up to an additional 2½ months (75 days).
• This extension does not impact the next plan year. You can still elect up to the full maximum annual election.
• If you have the benefits debit card, it will continue to work as normal, using the funds remaining in your prior plan year first.
ROLLOVER Plan Option
A carryover allows you to transfer up to $660 (2025) of your remaining balance at the end of the plan year into the following year. If you end up spending less than you anticipate when making your elections during open enrollment, you can tap into those funds next year. This rollover does not impact the next plan year. You can still elect up to the full maximum annual election.
NOTE: These are OPTIONAL plan designs that are at the discretion of the Employer. Please check with your Employer and/or Keystone to see what plan designs are offered to you.