Which type of LPFSA should I choose?
Health Care (Limited/Full) and Child & Elderly Care FSAs both provide you with the same tax advantages, but they follow different rules for what they'll pay for, when you can use them, and which additional requirements (if any) you'll need to satisfy in order to use them. Here's how to choose the FSA type that's right for you.
Should I set up a Health Care or Child & Elderly Care FSA?
The right choice depends on what kinds of expenses you have:
- Choose a Health Care FSA to pay for out-of-pocket health care expenses (e.g., doctor copays, prescriptions, deductible expenses, and other FSA eligible expenses) for you, your spouse, or your dependents.
- Choose a Limited Purpose FSA if you are enrolled in a HDHP with HSA to pay for out-of-pocket dental and vision expenses (e.g., eyeglasses, orthodontics) for you, your spouse, or your dependents.
- Choose a Child & Elderly Care FSA to pay for the care of a child or other dependent (e.g., an aging parent) so that you (and your spouse, if you have one) can work or look for work.
Can I have both types of accounts?
Sure! If you have both health care and child/elder care expenses, you can contribute to both a Health Care and Child & Elderly FSA. During setup, you'll be able to choose separate amounts for each type. However, you can't transfer funds between the two accounts.