The IRS changes the monthly limits for Mass Transit and Parking
- Effective January 1, 2012, the IRS has decreased the allowed Mass Transit election to $125 per month equal while increasing the Parking Expenses election to $240 per month. To change your election Our Transportation Fringe Account Election Form (PR7) can be used.
For 2013 the IRS will limit the Unreimbursed Healthcare Account to $2,500 per year.
- Effective January 1, 2013, the IRS is expectedc to limit the Unreimbursed Healthcare elections to a maximum of $2,500 per year. Employers may impose smaller limits based on their plan design. So, 2012 may the year to take advantage expenses.
IRS increases the mileage allowance for car usage
- For 2009, the IRS has increased the mileage allowance to 24 cents on use of your car to travel to or from healthcare services allowed in the Unreimbursed Healthcare account as an allowed deduction for gas, oil, and wear and tear. Our Transportation Expense Form (PR4) can be used.
IRS allows a "Grace Period" for service dates
- In a May 18, 2005 IRS Notice, an employer can amend the Plan Document to allow a grace period for participants in the Flexible Spending Account (Unreimbursed Healthcare) to extend the service dates for claims up to 2 months and 15 days past the plan year end. Thus, for example for a plan ending June 30, 2005, claims would be allowed up to September 15, 2005.
IRS prohibits reimbursement of Long Term Care premiums in the Unreimbursed Healthcare Account
- In Publication 969 where the IRS talks about Heatlh Spending Accounts (HSAs) and relates them to Flexible Spending Accounts (FSAs), which is our Unreimbursed Healthcare Account, the IRS prohibits the reimbursement of Long Term Care premiums.
Health Clubs may be reimbursed
- IRS may now allow health clubs if the participant has a prescription. (If a prescription is not available, a note from the doctor or healthcare professional describing the healthcare reasons and recommended treatments might suffice. For example, to reduce high blood pressure, a cardiovascular program is recommended with exercises that include at least 20 minutes on a treadmill at least 3 times per week.)
Over-the-counter drugs may be reimbursed
- IRS allows over-the-counter drugs, such as: aspirins, cold medicines, ointments, disinfectants, birth control, cough medicines, analgesics, etc.
Individual premiums may not be reimbursed
- IRS no longer allows individual healthcare insurance premiums paid directly to insurance companies, such as COBRA payments, private dental care, vision care, or hospital indemnity plans, as well as individual coverage for a dependent no longer eligible in your group insurance plan (e.g., child over age 25). (This is not to be confused with the allowed pre-tax payroll deductions paid by employees for the employer’s group health plans which has not changed.)
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