What is a Limited FSA?

A Limited FSA is often paired with an HSA. To ensure that the individual remain eligible for an HSA, a Limited FSA can be offered that only covers very specific items not covered under the HSA, such as dental, vision or over-the-counter dental and vision products. 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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