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Limited Purpose Medical Reimbursement Account

You can use the Limited Purpose Medical Reimbursement Account to cover dental, vision and over-the-counter medication costs considered tax deductible by the IRS but not paid by any health plan. You may set aside as much as $5,000 in an account to cover eligible expenses during the year. Your contributions come out of your check in equal installments each pay period.

Eligible Expenses

IRS Publication 502 Medical and Dental Expenses includes more information about eligible expenses. The chart below includes some examples:

Some Eligible Expenses Some Expenses Not Eligible

Money can be set aside for:

  • Dental and vision plan deductibles
  • Dental and vision care expenses
  • Orthodontia not covered by a dental plan
  • Over-the-counter medications

The IRS lists these non-eligible expenses:

  • Medical services and supplies, including prescription drugs, that are considered covered services under your State medical plan, if you are enrolled in a Health Investor medical plan and a Health Savings Account
  • Your contributions for outside health or life insurance
  • Employer medical premiums of any kind
  • Procedures or expenses not medically necessary
  • Weight loss programs not prescribed by a doctor