IRS Announces 2025 Contribution Limits for FSAs, Commuter Benefits
October 22, 2024
Limited Purpose FSA
What is it?
A Limited Purpose Health Flexible Spending Account (FSA) is a restricted Health FSA and the only type of FSA that employees with Health Savings Accounts are eligible to have.
How does it benefit you?
Many Health Saving Account holders save their HSA funds to cover the cost of their medical expenses when they retire. By enrolling in a Limited Purpose Health FSA, you can use pre-tax dollars to pay for eligible expenses now and save your HSA contributions for retirement.
Eligible Expenses
Expenses reimbursed through a Limited Purpose Health FSA are restricted to dental, vision and preventative medical expenses that are not covered under your health plan.
- Artificial teeth/dentures
- Braces
- Braille – books and magazines
- Contact lenses and eyeglasses
- Dental fees
- Lasik eye surgery
- Over-the-counter items for dental and vision (now eligible under the CARES Act!)
- Preventive medical services (as outlined in your high deductible health plan)
- Seeing eye-dog and maintenance
Manage Your Account Online
Create your online account so you can submit claims, check your account balance, sign up for direct deposit and more. Download our mobile app to conveniently access your account anytime, anywhere. You can also manage your account when you log into your account from any of your mobile devices.
How to Log Into Your Account
Watch Video
P&A Mobile App
Learn how to use P&A's mobile app to manage your P&A account. Penny Panda shows you how in this tutorial. Please note: this app is available for FSA, HRA, Commuter, and COBRA participants.
Watch VideoDownload P&A’s MyBenefits Mobile App
Contribute
First, you need to determine your anticipated medical expenses in the upcoming year. Consider what you typically spend in a year on medical, dental and vision expenses for you and your family. Calculate the total amount and set it aside into your FSA. For 2024, the maximum contribution amount is $3,200. For 2025, the maximum contribution amount is $3,300.*
With a Health FSA, your total annual election is available at the beginning of your plan year, so you can be reimbursed for purchases right away and budget for large expenses over the entire year!
*Please note: the max contribution amount is subject to change annually by the IRS.
Rules to Know
Grace Period or Carry Forward
Some employers may opt to add a grace period or carry forward provision to the plan. Either option gives you the ability to use funds from the prior plan year for a portion of the new year. Please check your Summary Plan Description (SPD) to see if your plan includes either of these options.
“Use or Lose” Rule
You will forfeit unused funds at the end of the year (or at the expiration of the grace/carry forward period if applicable). Make sure you contribute funds you’re confident you’ll spend in the coming year! Please Note: claim deadlines and run out periods can vary based off plan design. Please review your Summary Plan Description (SPD) for information regarding your plan deadlines, as well as loss of eligibility.
Not sure how much to contribute to your account? Our FSA calculator can help you figure it out.
It may be helpful to understand the list of FSA eligible expenses in thinking through how much to contribute.
In 2020 Congress expanded the list of FSA eligible expenses to include over the counter (“OTC”) items as well.
Use Your P&A Benefits Card
P&A Benefits Card
When you enroll in an FSA, you’ll receive a P&A issued Benefits Card in the mail. Use your P&A Benefits Card to purchase expenses wherever MasterCard is accepted. When you swipe the card, your money is automatically deducted from your account.
P&A Group Benefits Card
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Additional cards can be ordered at no extra cost by logging into your P&A MyBenefits Account. You can also contact customer service to order extra cards.
After you use your Benefits Card, you may be occasionally requested to provide documentation of your purchase. This request is to ensure the plan is in compliance and you’re using it to purchase IRS-approved eligible expenses. Examples of acceptable documentation include an Explanation of Benefits (EOB) from your insurance carrier or an itemized receipt.
View a list of providers who will accept the P&A Benefits Card.
If you are unable to use your Benefits Card, pay for your expense out-of-pocket and submit a claim to P&A.
How to Submit a Claim
If you’re unable to use your Benefits Card, you can pay out-of-pocket for your expense and submit a claim for reimbursement.
How To Submit A Claim
Watch Video
Ways to Submit a Claim
With P&A, there are numerous ways to submit a claim for reimbursement.
MyBenefits Account
Log into your P&A MyBenefits account and click Upload Claim/Documentation to submit a claim.
All claims must be accompanied with a receipt/proof of purchase that includes the date(s) of service and service(s) rendered. Estimates or statements with previous balances are not sufficient. Additional information may be requested if a receipt/proof of purchase contains an estimate, previous balance or does not contain service and services rendered.
Unsure of what expenses are eligible for reimbursement?
In 2020 Congress expanded the list of FSA eligible expenses to include over the counter (“OTC”) items as well.
Sign up for Direct Deposit
Enroll in direct deposit and have your reimbursement deposited directly into your designated checking or savings account. With direct deposit, P&A’s typical turnaround time is less than 24 hours from the point a claim is approved. If you don’t enroll in direct deposit, a reimbursement check will be mailed to your home, which can take anywhere from 10-15 business days.
To sign up for direct deposit, log into your account and go to Direct Deposit under Quick Links. Please note, it can take up to 15 days to verify your banking info and set up direct deposit in your MyBenefits account.
Manage Your Account Online
Create your online account so you can submit claims, check your account balance, sign up for direct deposit and more. Download our mobile app to conveniently access your account anytime, anywhere. You can also manage your account when you log into your account from any of your mobile devices.
How to Log Into Your Account
Watch Video
P&A Mobile App
Learn how to use P&A's mobile app to manage your P&A account. Penny Panda shows you how in this tutorial. Please note: this app is available for FSA, HRA, Commuter, and COBRA participants.
Watch VideoDownload P&A’s MyBenefits Mobile App
Contribute
First, you need to determine your anticipated medical expenses in the upcoming year. Consider what you typically spend in a year on medical, dental and vision expenses for you and your family. Calculate the total amount and set it aside into your FSA. For 2024, the maximum contribution amount is $3,200. For 2025, the maximum contribution amount is $3,300.*
With a Health FSA, your total annual election is available at the beginning of your plan year, so you can be reimbursed for purchases right away and budget for large expenses over the entire year!
*Please note: the max contribution amount is subject to change annually by the IRS.
Rules to Know
Grace Period or Carry Forward
Some employers may opt to add a grace period or carry forward provision to the plan. Either option gives you the ability to use funds from the prior plan year for a portion of the new year. Please check your Summary Plan Description (SPD) to see if your plan includes either of these options.
“Use or Lose” Rule
You will forfeit unused funds at the end of the year (or at the expiration of the grace/carry forward period if applicable). Make sure you contribute funds you’re confident you’ll spend in the coming year! Please Note: claim deadlines and run out periods can vary based off plan design. Please review your Summary Plan Description (SPD) for information regarding your plan deadlines, as well as loss of eligibility.
Not sure how much to contribute to your account? Our FSA calculator can help you figure it out.
It may be helpful to understand the list of FSA eligible expenses in thinking through how much to contribute.
In 2020 Congress expanded the list of FSA eligible expenses to include over the counter (“OTC”) items as well.
Use Your P&A Benefits Card
P&A Benefits Card
When you enroll in an FSA, you’ll receive a P&A issued Benefits Card in the mail. Use your P&A Benefits Card to purchase expenses wherever MasterCard is accepted. When you swipe the card, your money is automatically deducted from your account.
P&A Group Benefits Card
Watch Video
Additional cards can be ordered at no extra cost by logging into your P&A MyBenefits Account. You can also contact customer service to order extra cards.
After you use your Benefits Card, you may be occasionally requested to provide documentation of your purchase. This request is to ensure the plan is in compliance and you’re using it to purchase IRS-approved eligible expenses. Examples of acceptable documentation include an Explanation of Benefits (EOB) from your insurance carrier or an itemized receipt.
View a list of providers who will accept the P&A Benefits Card.
If you are unable to use your Benefits Card, pay for your expense out-of-pocket and submit a claim to P&A.
How to Submit a Claim
If you’re unable to use your Benefits Card, you can pay out-of-pocket for your expense and submit a claim for reimbursement.
How To Submit A Claim
Watch Video
Ways to Submit a Claim
With P&A, there are numerous ways to submit a claim for reimbursement.
MyBenefits Account
Log into your P&A MyBenefits account and click Upload Claim/Documentation to submit a claim.
All claims must be accompanied with a receipt/proof of purchase that includes the date(s) of service and service(s) rendered. Estimates or statements with previous balances are not sufficient. Additional information may be requested if a receipt/proof of purchase contains an estimate, previous balance or does not contain service and services rendered.
Unsure of what expenses are eligible for reimbursement?
In 2020 Congress expanded the list of FSA eligible expenses to include over the counter (“OTC”) items as well.
Sign up for Direct Deposit
Enroll in direct deposit and have your reimbursement deposited directly into your designated checking or savings account. With direct deposit, P&A’s typical turnaround time is less than 24 hours from the point a claim is approved. If you don’t enroll in direct deposit, a reimbursement check will be mailed to your home, which can take anywhere from 10-15 business days.
To sign up for direct deposit, log into your account and go to Direct Deposit under Quick Links. Please note, it can take up to 15 days to verify your banking info and set up direct deposit in your MyBenefits account.