Tag Archives: January 1

Last day to submit a Group Health Individual Plan for a 1/1/2011 effective date

Last day to submit a Group Health Individual Plan for a 1/1/2011 effective date

You must submit your Group Health application online right away if your looking for a January 1 2011 effective date.

Non-Qualified Expense Penalty

Non-qualified expense penalty: Under the new law, if you use your HSA funds for non-qualified expenses, you will face a higher penalty. The tax penalty for non-qualified HSA distributions will increase, effective January 1, 2011, from 10% to 20%.

Qualified Medical Expenses

Qualified Medical Expenses:

Starting January 1, 2011 you will no longer be able to pay for over-the-counter medications from your HSA as a qualified medical expense. Until the end of this year, you can reimburse yourself or pay from your HSA the money used to buy over-the counter medications. The new law removes over-the-counter drugs not prescribed by a physician from being paid from an HSA, FSA, or HRA on a tax-free basis.