COMMITTED TO OUR COMMUNITY SINCE 1882        
First National Bank of Durango - click to goto homepage

Online Banker Login  |   Contact Us  |  Fraud Prevention  |   Print Page  Printer friendly  |
   
 

HSA-Rule-Changes

Effective January 1, 2011
Tax Law Changes Affect Certain HSA Withdrawals

Changes in tax law made by the Patient Protection and Affordable Care Act (PPACA) affect the tax implications of certain withdrawals from Health Savings Account (HSA). These changes are summarized below.

  • Any amounts not used to pay qualifying medical expenses are subject to income tax and an additional IRS penalty (unless the distribution is on account of death, disability or made after reaching age 65 or older). Effective January 1, 2011, the additional IRS penalty is increased to 20% (up from 10% in years 2004 - 2009).
  • Over-the-counter (OTC) drugs, purchased on or after January 1, 2011, are generally not treated as a tax-free qualified expense, unless the individual has obtained a prescription for the OTC drug.

 
Equal Housing Lender

Equal Opportunity Employer, ©2013 All Rights Reserved, First National Bank of Durango
Member FDIC