What is an LPSA to Use with an HSA?

When it comes to maximizing the benefits of your HSA (Health Savings Account), understanding what an LPSA (Limited Purpose FSA) is can be extremely helpful. An LPSA is a type of Flexible Spending Account (FSA) that allows you to set aside pre-tax funds to cover eligible healthcare expenses that are not covered by your HSA.

Here's how an LPSA can work alongside your HSA:

• An LPSA can be used to pay for qualified dental and vision expenses that are not typically covered by an HSA.
• By using an LPSA for these specific expenses, you can preserve the funds in your HSA for other medical costs.
• Contributions to an LPSA are made pre-tax, reducing your taxable income and potentially saving you money on taxes.

It's important to note that you cannot have a traditional FSA (Flexible Spending Account) and an HSA at the same time. However, you can have both an HSA and an LPSA, as they serve different purposes and can work together to help you manage your healthcare expenses effectively.

Maximizing your HSA benefits can be straightforward when you incorporate an LPSA into your strategy. A Limited Purpose FSA allows you to allocate pre-tax dollars specifically for dental and vision care, thus freeing up HSA funds for larger medical expenses.