IRS Issues Guidance on 2011 Health Care Account Changes

September 08, 2010 0 COMMENTS

On September 3, 2010, the IRS issued guidance addressing the changes made by the health care reform package (the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act of 2010) to the use of certain health care accounts.

More specifically, effective in 2011, the health care reform legislation limits distributions for qualified medicine under health savings accounts (HSAs), Archer medical savings accounts (MSAs), health flexible spending arrangements (FSAs), and health reimbursement arrangements (HRAs) to prescription drugs and insulin.

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