IRS guidelines allow an employee to "convert" their Limited Purpose Flexible Spending Account (LPFSA) to an Health Flexible Spending Account (Health FSA) only under certain conditions. Employees must meet their health insurance deductible, and provide proof, to convert their account type.
Converting your LPFSA to a HCFSA is beneficial for eligible employees as it expands the categories of eligible spending to include IRS-approved medical expenses (as opposed to only qualified vision and dental under an LPFSA).
To convert your account, the steps are simple:
- Once you meet your deductible, acquire proof of deductible and YTD spending from your health carrier.
- Submit this proof via the Benepass LP-HCFSA Conversion form.
- This form will create a ticket for the Benepass support team, who will initiate the enrollment update.
- Within 2 weeks of submission, you will receive notice that your enrollment has been updated, and your remaining FSA balance will now be available for any approved HCFSA purchases. No other action is required - you will utilize the same card as before!
Questions? We are happy to help! Please reach out to Benepass Support for any assistance.