What's New

New for 2011

Qualified Medical Expenses.  For HSA, MSA, FSA, and HRA purposes, a medicine or drug will be a qualified medical expense only if the medicine or drug:

     1.  Requires a prescription,

     2.  Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or

     3.  Is insulin.

This applies to amounts paid after 2010.  However, it does not apply to amounts paid in 2011 for medicines or drugs purchased before January 1, 2011.

Additional tax increased.  For HSA and MSA purposes, the addtional tax on distributions not used for qualified medical expenses is increased to 20%.  This applies to distributions after 2010.