WHAT TO EXPECT IN 2011

Changes to tax-free savings accounts. These plans, which include health reimbursement accounts and flexible spending accounts, allow workers to set aside part of their paychecks in tax-free accounts, which can be used for health care expenses. Starting in 2011, these accounts cannot be used for over-the-counter drugs unless accompanied by a prescription from a doctor. Currently, there is no statutory maximum annual employee contribution (the maximum contribution is set at the employer’s discretion). Starting in 2013, the statutory maximum employee contribution will be $2,500 per year.