Click on any of the following to learn more.
Over-the-Counter Drugs
Effective January 1, 2011, reimbursements for over-the-counter (OTC) drugs and medicines are permitted only with a medical practitioner’s prescription. Restrictions also apply to the use of debit cards to purchase OTC drugs and medicines.
HSA Penalty Tax
Effective January 1, 2011, withdrawals from HSAs not used for qualified medical expenses will be subject to a 20% excise tax, which is an increase from 10% under prior law.
Health FSA Contribution Limits
Effective January 1, 2013, Health FSA employee contributions will be capped at $2,500 per year, indexed to CPI.
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Additional Resources
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Comparison Chart
Summary comparing key properties of Health FSAs, HRAs, and HSAs -
Newsletters
Additional summary information about these new rules impacting Health FSAs -
Video Tutorial
On changes impacting Section 125 plans -
American Fidelity’s Services
Learn about our FSA, HRA, and HSA administrative services.
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American Fidelity Assurance Company does not provide tax or legal advice.
ESB-840(0111)