IRS Issues FSA Guidance for OTCs

WASHINGTON — The Internal Revenue Service last week issued new guidance allowing the continued use of health flexible spending arrangement and health reimbursement arrangement debit cards for the purchase of prescribed over-the-counter medicines and drugs.

WASHINGTON — The Internal Revenue Service last week issued new guidance allowing the continued use of health flexible spending arrangement and health reimbursement arrangement debit cards for the purchase of prescribed over-the-counter medicines and drugs.

The new guidance modifies previous guidance to permit taxpayers to continue using FSA and HRA debit cards to purchase over-the-counter medications for which the taxpayer has a prescription. Effective after Jan. 15, 2011, in a

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