Don't forget that Thursday March 31, 2011 is the deadline for filing reimbursement claims for any Health Care Flexible Spending Account and Dependent Care Flexible Spending Account expenses that were incurred on or before December 31, 2010.

CLAIMS MUST BE RECEIVED NO LATER THAN MARCH 31, 2011.

Flexible spending accounts are "use-it-or-lose-it" plans. This means that amounts in the account at the end of the plan year cannot be carried over to the next year. However, the plan can provide for a grace period of up to 2½ months after the end of the plan year. If there is a grace period, any qualified medical expenses incurred in that period can be paid from any amounts left in the account at the end of the previous year. Your employer is not permitted to refund any part of the balance to you.

After March 31, employees will not be able to claim any of the remaining monies in their year 2010 flex account(s). The spending accounts are flexible, but the deadline is not!

NEW LIMITATIONS ON ELIGIBILITY FOR 2011

Due to changes in federal law, over-the-counter (OTC) medications are no longer eligible for reimbursement through a HSA without a prescription. A prescription will be required for all OTC medications purchased on or after January 1, 2011. The new rule does not apply to items for medical care that are not medicines or drugs. Thus, equipment such as crutches, supplies such as bandages, and diagnostic devices such as blood sugar test kits will still qualify for reimbursement by a HSA if purchased after Dec. 31, 2010, and a distribution from an HSA for the cost of such items will still be tax-free, regardless of whether the items are purchased using a prescription.

Please feel free to call or email with any questions.

Your Braver Wealth Team