Limited Purpose FSA (LPFSA)

What happens to my Limited Purpose Flexible Spending Account (LPFSA) upon termination?

Most of your benefits are funded by your employer and tied directly to your employment status. When you leave your current employer, you generally lose access to these perks as well. 

Post-Termination Run-Out Period

However, some companies have a post-termination run-out period for pre-tax accounts like your LPFSA. This might be applicable to the following accounts:

  • Health Care FSA
  • Limited Purpose FSA
  • Dependent Care FSA
  • Commuter (Parking/Transit)

During this period, you are able to submit expenses for reimbursement for any eligible expenses incurred during your time of employment. New expenses and new card transactions are not eligible here.

This length of the run-out period is determined by your employer, most commonly either 30, 60, or 90 days from your termination date. Once this time period passes, your account will officially close and any unused funds will be forfeited. 

Benepass is unable to offer extensions to the run-out period without the express written permission of your former employer.

Accessing Your Account During Run Out

If you anticipate making use of this run-out period, we will need to add a personal email address to grant you temporary account access. If you'd like us to add your personal email to your account, or if you have any additional questions, please reach out to Benepass Support for assistance.

Questions? We are happy to help! Please reach out to Benepass Support for any assistance.

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