LPFSA vs HSA 2026 Comparison Calculator
The LPFSA vs HSA 2026 calculator compares tax savings from stacking a Limited Purpose FSA ($3,300 limit, dental and vision only) with your HSA (medical only). Unlike a general FSA, the LPFSA preserves HSA eligibility per Treas. Reg. §1.125 and IRS Pub 969.
| LPFSA contribution (dental + vision capped at $3,300) | — |
| HSA contribution (annual limit) | — |
| Combined effective tax rate (federal + FICA + state) | — |
| LPFSA tax savings | — |
| HSA tax savings (excl. FICA if direct contribution) | — |
| Total annual tax savings (stack) | — |
| Without LPFSA (HSA only) | — |
The LPFSA vs HSA 2026 calculator compares tax savings from stacking a Limited Purpose FSA (2026 limit $3,300, dental and vision only) with your HSA ($4,300 self / $8,550 family, medical only). Unlike a general-purpose FSA, the LPFSA preserves HSA eligibility per Treas. Reg. §1.125 and IRS Pub 969 — you can hold both at the same time.
LPFSA vs HSA — Key Differences
HSA ($4,300 self / $8,550 family in 2026, +$1,000 catch-up at 55+) covers all qualified medical expenses, rolls over indefinitely, portable across jobs, and can be invested for retirement. LPFSA ($3,300 limit per Rev. Proc. 2025-19) is restricted to dental and vision expenses, has use-it-or-lose-it forfeiture (up to $660 rollover if employer allows), and is forfeited if you leave your employer. The LPFSA preserves HSA eligibility because it does NOT cover general medical care.
Why Stack LPFSA with HSA
Stacking lets you front-load tax-advantaged dollars for dental and vision (orthodontia, crowns, LASIK, glasses, contacts) without dipping into HSA. FICA savings advantage: LPFSA contributions are payroll-deducted, exempt from federal income tax + state tax + 7.65% FICA (Social Security 6.2% + Medicare 1.45%). HSA contributions via payroll are also FICA-exempt, but direct contributions outside payroll miss the FICA savings. For maximum tax efficiency, fund both via payroll.
LPFSA Eligible Expenses 2026
Dental: cleanings, fillings, crowns, bridges, dentures, orthodontia (braces, aligners), oral surgery, root canals. Vision: eye exams, prescription glasses, prescription sunglasses, contact lenses and solution, LASIK and PRK refractive surgery. Once the HDHP deductible is met, an LPFSA can often be expanded mid-year to cover all medical via a Post-Deductible FSA endorsement — check your plan SPD.
When to Skip the LPFSA
Skip the LPFSA if: (1) your dental and vision expenses are under ~$500/year (the use-it-or-lose-it risk outweighs the small tax savings); (2) you want maximum HSA flexibility for retirement health-care savings; (3) your employer plan only offers a general-purpose FSA (which disqualifies HSA contributions). Also note: an LPFSA grace period or rollover can affect HSA eligibility — if the LPFSA expands post-deductible to cover medical, HSA eligibility ends for those months.
Last updated May 2026. Sources: IRS Pub 969 (2025), Treas. Reg. §1.125-1, Rev. Proc. 2025-19.