Tax Advantage Accounts
Limited Purpose Health Flexible Spending Account
Maximum Contribution Amount
You can elect to contribute up to $2,500 into a Limited Purpose Health FSA. When deciding the amount you wish to contribute to this account, take into consideration:
- Known or fixed health care costs that are not covered by dental or vision insurance.
- Deductibles required under the dental/vision option you select.
FSA: Use It or Lose It
Tax advantage accounts have certain tax advantages. Therefore, the IRS regulates all tax advantage accounts. By law, any funds not used for services during the year will be lost. In other words, you need to use the money in your account or you'll lose it. See the www.irs.gov website for the complete list of qualified expenses, Publication 502.
Changing your Limited Purpose Health FSA contribution amount mid-year can only occur if you experience a qualifying status change. Contact Farm Credit Foundations for more information.
Amount Available for Reimbursement
Your total annual Limited Purpose Healt FSA contributions are available to be reimbursed at any time during the year. For example, if your claims exceed the balance in yourLimited Purpose Health FSA, you will be reimbursed up to the total amount you have elected to deposit for the year, regardless of the amount you have contributed at the time you submit your claim. Save your receipts. You may have to show the IRS the expense was qualified.