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Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 11:25 am
by creant
If one has $2000+ of excess funds in a Limited Purpose (Dental/Vision) FSA, what are some large expense ideas to use these funds in a non-wasteful way?

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 11:53 am
by medic
It will vary. Hard to say what's not wasteful without knowing needs - extra dental cleanings, dentures, bifocals, lasik, braces, etc.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 11:59 am
by masteraleph
Not “large” in that fashion, but a multi month supply of contact solution.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 12:36 pm
by Misenplace
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Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 12:54 pm
by MathIsMyWayr
creant wrote: Sun Sep 13, 2020 11:25 am If one has $2000+ of excess funds in a Limited Purpose (Dental/Vision) FSA, what are some large expense ideas to use these funds in a non-wasteful way?
Unless you have genuine needs for major dental or vision works, it may be difficult to use up $2,000+ of Limited Purpose (Dental/Vision) FSA. Many charges by dentists may cost a lot more than the annual limit covered by a dental insurance. Other major items: prescription glasses (around $500 each), prescription sun glasses, hearing aids, cataract surgery beyond basic single vision IOLs (not sure whether it is applicable),,,. Otherwise, count your blessings for being healthy.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 2:24 pm
by JediMisty
creant wrote: Sun Sep 13, 2020 11:25 am If one has $2000+ of excess funds in a Limited Purpose (Dental/Vision) FSA, what are some large expense ideas to use these funds in a non-wasteful way?
Once your deductible is met, aren't you allowed to use FSA funds for all your medical and dental expenses? I just spent some of mine on medical expenses today becayse my deductible has been met.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Sun Sep 13, 2020 2:34 pm
by JS-Elcano
I don't know if you need those, but I buy a pair of "sporty" prescription sunglasses for outdoor activities in addition to a more stylish "nice" pair for going out to dinner, a cultural event, shopping, etc. So, in years when I don't have large dental expenses I update my sunglasses in addition to my regular presciption glasses. I can also carry forward to the next year up to $500, but this will depend on your FSA.

Why did you chose $2000? I do a quick check at the beginning of the year to estimate my expenses on the FSA and then add a bit extra. If I carry money over from the previous year I reduce my contributions to the FSA.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 10:43 am
by SciurusVulgaris
JS-Elcano wrote: Sun Sep 13, 2020 2:34 pm Why did you chose $2000?
I was in the same boat when an expensive procedure was cancelled due to CV19. It was rescheduled, but for a while I was looking at how to spend a couple thousand dollars.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 10:55 am
by 6bquick
does your optometrist or your dentist sell gift cards? or will they let you "prepay" your account? Might be worth asking to avoid losing $2k.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 11:49 am
by hand
Concierge medicine / executive health program specifically tailored to the "limited" purpose?

$2k is a little light for a full workup, but you may be able to use the FSA for selected diagnostics...

If medical only, I've been able to spend hundreds (not thousands) on pretty comprehensive pre-packaged medical kits and sunscreen / makeup with sunscreen.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 12:03 pm
by SciurusVulgaris
hand wrote: Mon Sep 14, 2020 11:49 am If medical only, I've been able to spend hundreds (not thousands) on pretty comprehensive pre-packaged medical kits and sunscreen / makeup with sunscreen.

As I understand it, Limited Purpose FSA can only be used for dental and vision expenses. So you could get some really expensive prescription sunglasses. Or as someone said above, an extra dental cleaning if you can bunch that into this year.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 12:43 pm
by creant
Assuming the optometrist/dentist was willing to accept a prepayment for a future date procedure, is this allowable under the LP-FSA rules?

Specifically, is FSA reimbursement based on date of payment or date of service? My understanding is that, for HSA's at least, it is DOS.
6bquick wrote: Mon Sep 14, 2020 10:55 am does your optometrist or your dentist sell gift cards? or will they let you "prepay" your account? Might be worth asking to avoid losing $2k.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 1:37 pm
by TomatoTomahto
You could buy 2/3 of his stash of dental floss viewtopic.php?f=11&t=317809

It would be appropriate for the tax authorities to soften the FSA rules in these unprecedented times. Luckily (?) I had initiated an expensive procedure early in 2020 so avoided the COVID delay. Good luck.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 2:22 pm
by yohac
If the full amount hasn't already been deducted, your employer may allow you to make a mid-year change, taking no further deductions. This is a rule change due to COVID. Also your employer may allow you to rollover $500 to 2021.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Mon Sep 14, 2020 2:53 pm
by hand
SciurusVulgaris wrote: Mon Sep 14, 2020 12:03 pm
hand wrote: Mon Sep 14, 2020 11:49 am If medical only, I've been able to spend hundreds (not thousands) on pretty comprehensive pre-packaged medical kits and sunscreen / makeup with sunscreen.

As I understand it, Limited Purpose FSA can only be used for dental and vision expenses. So you could get some really expensive prescription sunglasses. Or as someone said above, an extra dental cleaning if you can bunch that into this year.
Agree in general, but per Investopedia:

"In some cases, a LPFSA can also be used for regular qualified medical expenses after you meet your deductible. However, this depends on the rules your employer has established for the LPFSA account that is offered."

Non dental/vision suggestions offered against the possibility this is allowed by the OP's plan.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Tue Sep 15, 2020 10:00 am
by MathIsMyWayr
TomatoTomahto wrote: Mon Sep 14, 2020 1:37 pm You could buy 2/3 of his stash of dental floss viewtopic.php?f=11&t=317809

It would be appropriate for the tax authorities to soften the FSA rules in these unprecedented times. Luckily (?) I had initiated an expensive procedure early in 2020 so avoided the COVID delay. Good luck.
Costco receipts add a code to items which may be eligible for FSA expenses. My recent Costco receipt does not show an FSA code for a dental floss purchase.

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Wed Sep 16, 2020 10:36 am
by SciurusVulgaris
hand wrote: Mon Sep 14, 2020 2:53 pm
SciurusVulgaris wrote: Mon Sep 14, 2020 12:03 pm As I understand it, Limited Purpose FSA can only be used for dental and vision expenses. So you could get some really expensive prescription sunglasses. Or as someone said above, an extra dental cleaning if you can bunch that into this year.
Agree in general, but per Investopedia:

"In some cases, a LPFSA can also be used for regular qualified medical expenses after you meet your deductible. However, this depends on the rules your employer has established for the LPFSA account that is offered."

Non dental/vision suggestions offered against the possibility this is allowed by the OP's plan.
Today I learned... Thanks!

The megacorp I work for doesn't allow for this, unfortunately. Readers should check their benefits, our sheet says - "only qualified dental and vision expenses".

Re: Limited Purpose FSA: What to Buy with Excess Funds?

Posted: Wed Sep 16, 2020 11:42 am
by BogleFanGal
SciurusVulgaris wrote: Wed Sep 16, 2020 10:36 am
hand wrote: Mon Sep 14, 2020 2:53 pm
SciurusVulgaris wrote: Mon Sep 14, 2020 12:03 pm As I understand it, Limited Purpose FSA can only be used for dental and vision expenses. So you could get some really expensive prescription sunglasses. Or as someone said above, an extra dental cleaning if you can bunch that into this year.
Agree in general, but per Investopedia:

"In some cases, a LPFSA can also be used for regular qualified medical expenses after you meet your deductible. However, this depends on the rules your employer has established for the LPFSA account that is offered."

Non dental/vision suggestions offered against the possibility this is allowed by the OP's plan.
Today I learned... Thanks!

The megacorp I work for doesn't allow for this, unfortunately. Readers should check their benefits, our sheet says - "only qualified dental and vision expenses".
Same here for DH's plan - we tried the limited FSA 1st time this year- overestimated by $650 during open enrollment, based upon an incorrect estimate from a provider. Even though the mistake wasn't ours, plan admin wouldn't allow us any adjustments - tried appealing 2x. The surprise midyear 30 day covid grace period was a blessing, allowing us a one-time adjustment, since covid impacted some of our other work.

I will NEVER sign up for this limited FSA again. They made major reimbursement mistakes due to their own IT problems that cost me hours of paperwork and phone call time to fix - I had to escalate several times to managers, because reps were so unhelpful and unknowledgeable. Given the "use or lose" risk and restricted spend categories, the tax savings just aren't worth it. We couldn't even use the $ on cosmetic dentistry like whitening, etc.

(I do think the regular FSA is decent, because there's so much more you can use the funds for.)