OTC Medications Reimbursable by Flex Plans
November 20, 2003
Employers may reimburse employees for the cost of nonprescription, over-the-counter medications through flexible spending accounts under a new ruling by the Internal Revenue Service. Revenue Ruling 2003-102 provides that such reimbursements will be eligible for tax-free treatment if properly substantiated.
In announcing the ruling, Treasury Secretary John Snow said, "Flexible Spending Accounts are an important tool in helping people meet their health care costs. 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."
The ruling explains that the statutory exclusion for reimbursements of employee health reimbursements is broader than the limitations for the itemized deduction for medical expenses, which does not include nonprescription drugs.
- NACUBO Expresses Concerns with ED Proposal to Expand Federal Financial Responsibility Rules
- IRS Proposes Modifications to 1098-T Reporting
- ED Policy to Require Annual Student Aid Compliance Audits Beginning FY17
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Big Opportunities for Small Institutions
September 20-21, 2016
- 2016 Tax Forum
September 25-27, 2016
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives