Limited Purpose FSA

A Limited Purpose FSA is a flexible spending account that only reimburses you for eligible dental and vision expenses. This limited purpose FSA is available to employees enrolled in HDHP as well as an HSA.

This limited-purpose health FSA is consistent with IRS Code §223 and with previous IRS guidance. Code §223(c)(1) provides that an HSA-eligible individual can have certain permitted insurance and permitted coverage (including dental and vision care), and Code §223(c)(2)(C) and IRS Notice 2004-23 provide that an HSA-eligible individual can have coverage for preventive care before the minimum annual deductible has been satisfied.

Coaches' Takeaway

If you are enrolled in a HDHP plan with an HSA you may pair it with a limited purpose FSA.

Tools & Resources

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.


Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.