What is a Limited FSA?

A Limited FSA, often referred to as a Limited Purpose FSA, is a type of FSA that only covers vision, dental, and preventive care expenses and is compatible with an HSA. The term "Limited FSA" is also sometimes used to describe an FSA where the employer has limited the expenses to those of their choosing (i.e. FSA only covers Medical Deductible and Co-pays), which may be the case to be compatible with another employer plan offering such as an HRA.

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