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 Responds to FASB's NFP Proposal
- Results Are In: The 2014 NACUBO Tuition Discounting Study
- NLRB Dismisses Union Bid from Northwestern Football Players
- WEBCAST: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
Wednesday, September 9, 2015 12:00PM ET
- ON-DEMAND: Developing Your Campus Distance Learning Strategy
- ON-DEMAND: A Just-in-Time Webcast to Explain FASB’s NFP Reporting Proposal
- ON-DEMAND: Decoding ED's Cash Management Proposal
- ON-DEMAND: Corporate Sponsorships: Getting it Right
- ON-DEMAND: Analytics that Support Planning, Budgeting, and Results
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis