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Subject:  Re: Employee Reimbursement Accounts Date:  12/10/2012  9:19 PM
Author:  TMFPMarti Number:  117102 of 129991

I understand this change is related to national healthcare reform, but trying to understand the reasoning behind it (if there is any).

I guess the prior responder is surprised that you have to pay for things or borrow and spend, the alternative. The following tax increases go into effect next year, all a result of the Affordable Care Act, a/k/a Obamacare:

1. The reduction in FSA limits.

2. An increase to 10% of AGI (from 7.5%) in the exclusion of deductible medical expenses. This change is delayed until 2014 for those 65 and older.

The following two were mentioned in a recent thread:

3. The surtax on certain investment income

4. The Medicare surtax on certain earned income

Note that none of these changes has anything to do with the "fiscal cliff" tax components.

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