Bryan Cave LLP Americas | Asia | Europe
To: Our Clients and Friends February 22, 2011
To: Our Clients and Friends February 22, 2011
IRS Reverses Course – Breast Pumps and Other Lactation Supplies are Now Deductible Medical Expenses subject to Reimbursement under FSAs, HRAs and HSAs
In Announcement 2011-14, the Internal Revenue Service (“IRS”) concluded that breast pumps and supplies that assist lactation are medical care under Section 213(d) of the Internal Revenue Code because they are for the purpose of affecting a structure of the body of the lactating woman. Therefore, these expenses can now be reimbursed under a health flexible spending arrangement, health reimbursement arrangement or health savings account. The IRS had previously taken the position that these expenses were not eligible for reimbursement under these types of plans. In light of this change, the sponsor of one of these types of plans should consider whether a plan amendment, a summary of material modifications to participants, or both, are necessary.
Employee Benefits & Executive Compensation
Client Service Group
This Client Alert is published for the clients and friends of Bryan Cave LLP. Information contained herein is not to be considered as legal advice. This Client Alert may be construed as an advertisement or solicitation. © 2011 Bryan Cave LLP. All Rights Reserved. Bryan Cave LLP Americas | Asia | Europe
If you have any questions regarding anything discussed in this Alert, the attorneys and other professionals of the Employee Benefits and Executive Compensation group of Bryan Cave LLP are available to answer your questions.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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