Over-the-counter drugs to be covered by flexible spending plans

[Guest guest]

The following websites say that dietary supplements (e.g.vitamins)

cannot be deducted under a health care flexible spending plan but

over-the-counter drugs now are.

http://www.irs.gov/newsroom/article/0,,id=112623,00.html

IR-2003-108, Sept. 3, 2003

WASHINGTON — Today, the Treasury Department and the IRS announced

over-the-counter drugs can be paid for with pre-tax dollars through

health care flexible spending accounts. Treasury and IRS issued

guidance clarifying that reimbursements for nonprescription drugs by

an employer health plan are excluded from income. Thus,

reimbursements by health flexible spending arrangements (FSAs) and

other employer health plans for the cost of over-the-counter drugs

available without prescription are not subject to tax if properly

substantiated by the employee.

" Flexible Spending Accounts are an important tool in helping people

meet their health care costs, " stated Treasury Secretary

Snow. " Since many prescription drugs have moved to the over-the-

counter market, this action today makes paying for them a little bit

easier to swallow. " ...

http://www.irs.gov/pub/irs-drop/rr-03-102.pdf See this website for

an explanation of Revenue Ruling 2003-102 (over-the-counter drugs

being reimbursed by flexible spending plans.)