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  1. You are enrolled in a Health Savings Account
    A Limited FSA is a flexible spending account option that is available when you or a spouse also participate in a Health Savings Account. It allows you to setup an account separate from your Health Savings Account to save tax-free dollars for dental, vision, and in some cases, post-deductible expenses after you meet the federal statutory minimum deductible amount.

  2. You, your spouse, or tax dependent(s) have major dental or vision expenses planned early in the plan year
    Unlike a Health Savings Account where funds are available to you as you contribute them, the entire Limited FSA balance is available for you to spend as soon as your plan year begins. If you have a major dental or vision expense planned early in your plan year, this allows you to pay for the service immediately after it is received without having to wait until your HSA balance accrues or paying out of pocket and refunding yourself later.

  3. You have an investment strategy for your Health Savings Account
    One of the major benefits of a Health Savings Account is the ability to grow your dollars with investments. Unlike any other program available, HSAs have a triple-tax advantage: money goes in tax-free, interest earned is tax-free, and money comes out tax-free for qualified expenses. Unfortunately, many HSA accountholders are unable to invest because they use their HSA funds before they reach their account’s investment threshold. A separate Limited FSA for dental and vision expenses allows you to save your HSA dollars.

  4. Your dental, vision, and post-deductible (if applicable) expenses are predictable
    Unlike the Health Savings Account, a Limited FSA is a use-it-or-lose-it account, so funds that are unused by the end of your FSA plan year may be forfeited. Check with your employer to see if they have a grace period or rollover feature, which will limit your risk exposure to losing unused FSA dollars at the end of your plan year. Regardless, the Limited FSA should be used for services you expect to have during the FSA plan year like payments for an orthodontia plan, new glasses or contacts, or other non-cosmetic dental work.

  5. You have a major medical service planned or are close to retirement
    If you have a major medical service planned, you will want to maximize your HSA balance in the period leading up to the service so you will have more funds available to cover expenses related to the service. In some cases, individuals facing this scenario may sacrifice important dental or vision services in order to save for the medical expense. A Limited FSA allows you to have funds available to pay for the dental or vision services you need without touching your HSA balance. If your Limited FSA also covers post-deductible expenses, you can use your Limited FSA to pay for expenses related to the procedure as well after the statutory deductible amount has been met (for 2019, $1,350 for individuals and $2,700 for families).

    Individuals approaching retirement may be in a similar position where they wish to maximize HSA dollars that can be used to pay for long term care insurance premiums and Medicare premiums. A Limited FSA allows you to take care of your vision and dental health while protecting your HSA dollars for retirement planning.

    An HSA offers an amazing triple-tax advantage, however the tax savings do not have to stop there. With thoughtful strategy, you can save even more on your health-related expenses when you participate in a Limited FSA in conjunction with your Health Savings Account.

About Flores

Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.

  • Cindy Bistany
  • Director of Business Development and Strategic Alliances
  • (828) 693-3595

  • Clay Peddycord, GBA, CFC
  • Director of Business Development and Strategic Alliances
  • (800) 532-3327

  • Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
  • Director of Business Development and Strategic Alliances
  • (800) 532-3327
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