HEALTH REFORM CHANGES IN 2011

Here are three tax law changes resulting from health care reform that will take effect on January 1, 2011:

LIMITED HEALTH PLAN REIMBURSEMENTS. New rules apply to your withdrawals from health savings accounts (HSAs), Arche4r Medical Savings Accounts (MSAs) Health Flexible Spending Arrangements (FSAs) and Health Reimbursements Arrangements (HRAs).
Beginning January 1, you will no longer be able to use funds in these accounts to pay for over-the-counter medicines or drugs unless you have a prescription from your doctor Insulin and certain medical devices and supplies continue to qualify for tax-free reimbursement.

So do this: Depending on your plan, you may be able to request reimbursement in 2011 for over-the-counter items purchased by December 31, 2010.

HIGHER PENALTIES on NON-QUALIFIED DISTRIBUTIONS. Starting on January 1, 2011, the penalty for nonqualified distributions from your HAS or Archer MSA increases to 20% of the amount you withdraw. That is higher then pulling money out of the IRA before age 59.

OPTIONAL HEALTH COVERAGE REPORTING. Reporting the value of health benefits you provide to employees is optional for the year ending December 31, 2011, instead of mandatory.
You can choose to report the premiums paid for benefits such as health insurance, prescription drug coverage, and dental and vision plans on Forms W-2 for 2011. The reported value is not yet taxable income to employees.

So if you know someone that is looking for a way to save taxes and remain invisible to the IRS, call me at 702-642-8953 or write me at isueirs@aol.com. With me there are: No conditions.
No exceptions. No time limits. No IRS.