BASE Announces That Over-the-Counter Drugs Are Covered by Association 105 HRA
Jacksonville, FL (PRWEB) October 21, 2005
Lack of familiarity will lead to lack of savings for many small business owners.
Qualified self-employed business owners can now deduct over-the-counter drugs with the use of the Association 105 HRA, and UGA is the only insurance force in the country with the ability to offer their clients this benefit.
As of September 3, 2003, the IRS announced that certain over-the-counter medications are deductible through an employer funded health plan such as an HRA. While these expenses are deductible through flexible spending accounts or HRAs, they are not deductible through an MSA (only about 5% of MSAs are employer sponsored). This makes the Association 105 HRA a very strong benefit for qualified small business owners.
HRAs are another means for self-employed business owners to meet their health care needs. Without an HRA in place, self-employed business owners will be unable to utilize this deduction.
With the increasing trend of drugs becoming available over-the-counter without a prescription, there is more incentive to have a properly established HRA to deduct these expenses. These include items used to treat or cure specific existing illnesses or symptoms. Items that may now be deducted include over-the-counter medications such as pain relievers, allergy medicines, antacids, cold medicines, etc. Items used for general health and welfare such as vitamins and toiletries will continue to remain non deductible through such plans.
Along with this new addition, the Association 105 HRA will continue to save qualified small business owners tax dollars by making their health insurance premiums and their out-of-pocket medical expenses 100% deductible as a business expense rather than a personal deduction.
“We have further enhanced our section 105 HRA to allow for more tax savings,” said Terry Harrington, BASE president. “Each year many small business owners forgo this tax savings thinking it’s too good to be true. It’s a shame that people are hesitant, because this program can save small business owners a lot of money.”
BASE continues to enhance the Association 105 HRA to offer clients a simple way of handling health care costs. Once enrolled, BASE provides everything a qualified small business owner needs to begin saving tax dollars. Thousands of small business owners are already saving. To learn more about this tax saving program, please contact Christine Suarez-Fugere today at 904-685-2348.
Benefit Administration for the Self-Employed (BASE) is an employee benefit administrator focused on helping small business owners save on their taxes. Based on Internal Revenue Code section 105, thousands of qualified small business owners use the Association 105 Health Reimbursement Arrangement to fully deduct 100% of their family medical expenses. In 2003, customers averaged over $ 3,000 in tax savings by using the Association 105 HRA. Access through association membership. M/ASSOC00603 Exp 12/05
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