Limited-Purpose Flexible Spending Account (LPFSA)

Limited-Purpose Flexible Spending Account (LPFSA)

What is a Limited-Purpose Flexible Spending Account (LPFSA)?

A pre-tax spending account that works alongside an HSA to pay for eligible dental and vision expenses prior to meeting your medical deductible.

After your medical deductible is met, you can use the LPFSA to pay for eligible medical, prescription, and over-the- counter items.

Limited-purpose FSA funds are use it or lose it. Funds may be forfeited, outside of the allowed carryover noted below, if not used by the end of the plan year.

Main benefits of a Limited-Purpose Flexible Spending Account (LPFSA)

• Helps reduce your taxable income and increase your take home pay

• Allows you to set aside additional pre-tax dollars for eligible dental and vision expenses

• Eligibility

  Who is eligible?

  Colleagues regularly scheduled to work 30+ hours per week and enrolled in a HSP with an HSA.

• Account details

  Who owns the account?

  CVS Health

  Who can contribute to the account?

  Colleague

  Who can the account be used for?

  Self, Spouse and any tax dependent

• Contribution details

  What is the annual IRS contribution limit for 2024 plan year?

  $260 up to $3,200

  How much does CVS Health contribute?

  N/A

  When can I adjust my contribution?

  During annual enrollment or with a qualifying life event

  Can I carryover the account balance?

  The standard IRS maximum carryover of $610 will be allowed.

• Spending details

  Do the funds expire?

  Yes

  When can I start using my funds?

  Your full contribution is available at the start of the plan year. Your pro-rated payroll contributions will be withheld each pay period. You can use your funds prior to your pro-rated payroll contributions being deposited into your account.

  Note: All funds are used for eligible expenses incurred during the benefit plan year.

  What expenses are eligible?

  Dental and vision expenses before you hit your medical deductible

  View the full list of eligible expenses on inspirafinancial.com

  Do I receive a debit card?

  Yes

  How do I access the funds?

  • Use the Inspira Financial debit card at the time of service or;

  • Use online bill pay to pay your providers directly or;

  • Reimburse yourself for out-of-pocket expenses through the Inspira Financial mobile app or website via check, or ACH transfer funds directly to your bank account

• Tax details

  Do I need to submit documentation for an expense to Inspira Financial?

  Yes - An itemized receipt or Explanation of Benefits (EOB) from your insurance provider is required when you submit a claim.

  Note: You may also have to provide documentation to verify a Inspira Financial Card purchase.

  Are the distributions tax-free?

  Yes

  Are the earnings tax- free?

  N/A

• Savings and investments

  Does the account provide long-term savings?

  No

  Can I invest the funds in the account?

  No

  If I leave the company, can I take my account with me?

  No

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