Limited Purpose FSA: What to Buy with Excess Funds?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
creant
Posts: 10
Joined: Sat Oct 13, 2018 11:34 am

Limited Purpose FSA: What to Buy with Excess Funds?

Post 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?
medic
Posts: 110
Joined: Thu Jul 18, 2019 11:30 am

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

Post by medic »

It will vary. Hard to say what's not wasteful without knowing needs - extra dental cleanings, dentures, bifocals, lasik, braces, etc.
masteraleph
Posts: 632
Joined: Wed Nov 04, 2009 9:45 am

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

Post by masteraleph »

Not “large” in that fashion, but a multi month supply of contact solution.
User avatar
Misenplace
Moderator
Posts: 2433
Joined: Mon Feb 01, 2016 9:46 pm

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

Post by Misenplace »

A post suggesting fraudulent behavior has been removed. Suggesting or encouraging illegal acts is not acceptable on the forum.

See Serious Violations
Certain violations, in particular posting or linking to spam, threatening, abusive, illegal, or obscene material, will result in removal of the message and may lead to an immediate and permanent ban of the poster.

Moderator Misenplace
MathIsMyWayr
Posts: 2145
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

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

Post 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.
JediMisty
Posts: 580
Joined: Tue Aug 07, 2018 7:06 am
Location: Central NJ

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

Post 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.
JS-Elcano
Posts: 71
Joined: Wed Jun 10, 2020 7:29 pm

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

Post 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.
SciurusVulgaris
Posts: 68
Joined: Sat Sep 26, 2015 7:48 pm

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

Post 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.
6bquick
Posts: 73
Joined: Sat Mar 26, 2016 8:56 pm

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

Post 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.
User avatar
hand
Posts: 1481
Joined: Sun May 17, 2009 8:42 pm

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

Post 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.
SciurusVulgaris
Posts: 68
Joined: Sat Sep 26, 2015 7:48 pm

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

Post 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.
Topic Author
creant
Posts: 10
Joined: Sat Oct 13, 2018 11:34 am

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

Post 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.
User avatar
TomatoTomahto
Posts: 10950
Joined: Mon Apr 11, 2011 1:48 pm

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

Post 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.
Okay, I get it; I won't be political or controversial. The Earth is flat.
yohac
Posts: 376
Joined: Sat Sep 01, 2018 1:42 pm

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

Post 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.
User avatar
hand
Posts: 1481
Joined: Sun May 17, 2009 8:42 pm

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

Post 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.
MathIsMyWayr
Posts: 2145
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

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

Post 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.
SciurusVulgaris
Posts: 68
Joined: Sat Sep 26, 2015 7:48 pm

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

Post 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".
User avatar
BogleFanGal
Posts: 631
Joined: Mon Mar 20, 2017 6:59 pm

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

Post 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.)
"Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen." Mark Twain
Post Reply