December 27, 2010

2011 Health Savings Account Update

Healthcare Reform has caused a pair of changes to Health Savings Accounts effective January 1, 2011:

1. A person can no longer use their HSA funds to pay for over-the-counter drugs without a prescription from their doctor.

2. If you use your HSA funds for a non-qualified expense the IRS penalty has been increased from 10% to 20%.

If you have any questions regarding these changes you may contact the IRA/Special Accounts Department at (616) 242-9790 extensions 9161 or 9162.