Category Archives: Tax News

Affordable Care Act Tax Provisions

Do you have a Health Flexible Spending Arrangement – this can be a HSA, FSA or Archer MSA.  Effective January 1, 2011, the cost of over-the-counter medicines can’t be reimbursed from these accounts unless you have a prescription except for Insulin.  Other health care expenses that are not affected are medical devices, eye glasses, contact lenses, co-pays and deductibles.  FSA and HRA participants can continue using debit cards to buy prescribed over-the-counter medicines.  Also, as of October 31, 2013, there is a new $500 carryover option for employer-sponsored healthcare flexible spending arrangements.