FAQs About Getting Started with Individual LPFSAs

If your company offers High Deductible health insurance with an HSA and you are eligible to enroll in one of their plans, you are eligible to enroll in a LPFSA. You do not need to be enrolled in health insurance through your company, you simply need to be eligible to be offered a qualified insurance plan. Though there are exceptions, self-employed employees and shareholders who own 2% or more in an S-Corp, LLC, LLP, PC, sole proprietorship, or partnerships are generally ineligible for LPFSAs
If you already have a health savings account (HSA), or intend to sign up for one, you can only enroll in a Limited Purpose FSA and Child & Elderly Care FSA. You may not be enrolled in an HSA and a full purpose Health Care FSA at the same time.
 
Sure! If you have both Health Care and Child/Elder care expenses, you can contribute to both a LPFSA 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.
 Yes. You'll have 30 days from the birth of a child, a death of a family member, or another qualifying life event (QLE) on this list to set up a new LPFSA. When you do, the plan will have a retroactive start date of the first of the month in which the event occurred. 
Keep in mind that if you're expecting a newborn, you need to wait until after the child is born to set up the account.
After your plan starts, you can pay for eligible LPFSA and/or Child & Elderly Care FSA expenses using your Zenefits Card, or by submitting claims for reimbursement of out-of-pocket expenses.
  • Learn more about using the Zenefits Card.
  • Learn more about using an LPFSA and a Child & Elderly Care FSA.
You can contribute up to $2750 a year to a Health Care FSA, regardless of the filing status you claim on your Federal tax returns. Learn more.
As an employee, the only cost to you is the amount you contribute to your LPFSA. Your company will pay all setup and account fees.
LPFSAs let you plan ahead for your out-of-pocket expenses, so the right contribution amount for either FSA type will ultimately depend on how much you expect to spend on eligible expenses.
Here are a few things to consider:
  • If you contribute more, you may increase your tax savings. You can maximize your tax savings if you contribute more.
  • Your company may choose to contribute to your LPFSA. If so, you'll be able to see the amount when you set up your plan. Company contributions count towards your annual maximum limit for a Child & Elderly Care FSA, but not towards the limit for a Limited Purpose FSA
  • LPFSAs are "use it or lose it" accounts. Any funds you don't spend by the end of the plan year (or when your employment ends) go back to your employer, so don't contribute more than you're sure you will spend. 4. Contribution amounts can't be changed. Once the plan starts, you can only change your contribution amount(s) after a birth, death, change in marital status, or other qualifying life event.
The right choice depends on what kinds of expenses you have:
  • Choose a Limited Purpose FSA to pay for out-of-pocket Dental and Vision expenses (e.g., eyeglasses, contact lenses, orthodontics, and other LPFSA eligible expenses) 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, look for work, or go to school full-time.
Your deadline to enroll in a LPFSA is dependent on what type of enrollment is occurring. 

New Company LPFSA Plan or  LPFSA Open Enrollment 

When your company sets up a new company LPFSA plan (initial LPFSA enrollment) or renews an existing plan (open FSA enrollment), you have until the 25th of the same month to set up your individual LPFSA to start on the 1st of the following month. If you enroll after the 25th, your LPFSA will start on the 1st of the month after next. 

New Hire LPFSA Enrollment 

When you get hired at a company with an existing LPFSA plan, you'll need to complete enrollment for your LPFSA within 30 days from your hire date. Your LPFSA start date will depend on your hire date. If you do not meet this deadline, you will need to wait until your company's next LPFSA renewal period or enroll if you experience a Qualifying Life Event.

Qualifying Life Event Enrollments

Employees have 30 days from their Qualifying Life Event to enroll in an LPFSA. This enrollment will be effective the first of the month following the QLE. Employees must reach out to Customer Care in order to complete this request.

You can start using your Limited Purpose FSA on the first day of the plan. The entire annual contribution amount (including employer contributions, if any) is available on that date, and is repaid incrementally through deductions from your paychecks over the remainder of the plan year. However, you can't use your LPFSA to pay for expenses that occurred prior to the start of your LPFSA.

LPFSAs let you set aside some of what you earn each year into an account that's specifically for out-of-pocket Dental and Vision expenses in expenses, without paying taxes on those dollars. If you have recurring care expenses (e.g., eyeglasses, contact solution, etc.), or simply a rough estimate of how much you expect to spend on them, an LPFSA will help you save money.

Still need our help? Our support team is waiting to help you. Contact us