from the Academy of General Dentistry

The Internal Revenue Service has issued new guidance allowing the continued use of health flexible spending arrangement (FSA) and health reimbursement arrangement (HRA) debit cards for the purchase of prescribed over-the-counter medicines and drugs. The new guidance modifies previous guidance to permit taxpayers to continue using FSA and HRA debit cards to purchase over-the-counter medications for which the taxpayer has a prescription. The new guidance, IRS Notice 2011-5, as well as answers to frequently asked questions are available on the IRS website.