FedEx Freight | Cares Act Extends Hsa, Fsa, And Hra Flexibility With Additional Eligible Expenses

[dsh69]

Wanted to attach this to an existing thread but couldn't find one that fit


CARES Act Extends HSA, FSA, and HRA Flexibility with Additional Eligible Expenses

On Friday, March 27, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

The CARES Act includes important provisions for users of health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs), specifically:

Over-the-counter drugs and medicines not prescribed by a physician can now be reimbursed pre-tax.

Menstrual care products are now considered eligible expenses. Examples include tampons, pads, liners, cups, sponges, or similar products.

Health plans can now cover telehealth services pre-deductible without impacting HSA eligibility.

The changes to eligible expenses are retroactively effective January 1, 2020.

The CARES Act is a part of the $2 trillion stimulus package aimed at providing additional relief during the coronavirus pandemic.

For more information on coronavirus and safety measures, please visit the Centers for Disease Control and Prevention.

 

[dsh69]

Flexible Spending Accounts

Can employers extend the FSA claim filing deadline?
Probably. While there is no explicit timeframe prescribed for a run-out period, employers should review their plan document with counsel and determine whether the plan can be amended to extend the run-out date. Extending the run-out period is an attractive option as it gives participants additional time to obtain and submit sufficient documentation for expenses incurred during the plan year.

What is required to extend the claim filing deadline?
Plan documents should likely be amended if possible and that amendment should be communicated to employees. Once your plan is amended, your FSA administrator should be able to quickly and easily update your run-out dates in their system.

Can employees either increase or decrease their FSA election amounts due to COVID-19?
Under IRS rules and as defined in employer plan documents, employees generally cannot make changes to their FSA elections unless they have a qualifying life event. However, a qualifying event as it relates to COVID-19 may include:

• Change in employment status that affects eligibility
  
  
• FMLA leave
  
  
• Change to the number of dependents
  

Dependent Care Flexible Spending Accounts

How does the closure of day care institutions due to COVID-19 impact participants’ dependent care contributions?
The COVID-19 pandemic has had an unprecedented impact on the lives of American workers, parents, and children. An employer’s dependent care flexible spending account program (also known as a “dependent care assistance program”) generally has flexibility during times like these while parents work.

Due to recent life events, participants may be eligible to increase or decrease their dependent care FSA elections for situations they may be experiencing, including:

• Change of day care provider
  
  
• Cost of care changes (unless care provider is a relative)
  
  
• Need for care changes due to a job change or change of work hours
  

Please to be sure to check your plan documentation for eligibility. If eligible, and experiencing an election change event, participants typically have 30 days from the date of the event to submit their request. Participants should contact their employer’s benefits office for more information on the process to change elections.

 

[dsh69]

More:

Health Savings Accounts


Can employees change their HSA election amounts?


Yes, employees can change their HSA contributions at least once per month through their employer. If payroll contributions are no longer an option, employees can contribute directly to their HSA and it will still be an above the line tax deduction.

Please note that 2019 contributions can be made to your HSA until July 15, 2020 based on recent IRS Guidance.



Health Reimbursement Account (HRA)


What happens to my employee’s HRA if they are terminated due to a COVID-19?


Employees have until the claims submission deadline to submit their HRA claims, but the date of service must be on or before their coverage termination date.






COBRA


Are furloughed employees eligible for COBRA?


Eligibility for COBRA is generally predicated on a loss of coverage. If your company is subject to the requirements of COBRA and a furlough results in a loss of group health coverage, then furloughed employees will generally be eligible for COBRA.

(Employers: Learn more about the dos and don’ts of administering COBRA with COBRA Academy.)

 

[dsh69]

Read carefully:

The CARES Act also allows you to withdraw up to 100% of your 401K if you are impacted due to the Wuhan Red Death.

You have THREE YEARS to pay taxes on it OR you can pay it back and owe no taxes. There is NO withdrawal penalty.

I'm not an investment adviser but if you read the above a few times you'll realize the possibilities are endless.

 

[citydog]

Read carefully:

The CARES Act also allows you to withdraw up to 100% of your 401K if you are impacted due to the Wuhan Red Death.

You have THREE YEARS to pay taxes on it OR you can pay it back and owe no taxes. There is NO withdrawal penalty.

I'm not an investment adviser but if you read the above a few times you'll realize the possibilities are endless.

They are allowing up to 100,000$ max. You are also saving 10% on the penalty.

 

[dsh69]

They are allowing up to 100,000$ max. You are also saving 10% on the penalty.

Correct. No early withdrawal penalty AND three years to pay taxes on the withdrawal.

 

[Freighthauler9]

Correct. No early withdrawal penalty AND three years to pay taxes on the withdrawal.

It's my understanding your FedEx has to approve this part of the CARES ACT before you can access your 401k. Has FedEx approved it yet with the company than handles yalls 401k?

 

[Afdriver02]

It's my understanding your FedEx has to approve this part of the CARES ACT before you can access your 401k. Has FedEx approved it yet with the company than handles yalls 401k?

If you’re fully vested It’s your money not Fedex’s. You don’t need no stinking corporate permission.

 

[Redracer3136]

It's my understanding your FedEx has to approve this part of the CARES ACT before you can access your 401k. Has FedEx approved it yet with the company than handles yalls 401k?

If you’re fully vested It’s your money not Fedex’s. You don’t need no stinking corporate permission.

Actually, FedEx did have to grant permission for us to access and yes, they have...we now have access to our 401’s up to $100K if one so chooses

 

[Afdriver02]

Actually, FedEx did have to grant permission for us to access and yes, they have...we now have access to our 401’s up to $100K if one so chooses

I know someone personally that took out over 100,000 and paid off his house no permission needed. It’s his money.

 

[dsh69]

I know someone personally that took out over 100,000 and paid off his house no permission needed. It’s his money.

Yes, if you're over 59 1/2 then you can do this. However, under the CARES Act, you can take it out before 59 1/2 without penalty and you have 3 years to pay taxes on the amount withdrawn.

 

[dsh69]

It's my understanding your FedEx has to approve this part of the CARES ACT before you can access your 401k. Has FedEx approved it yet with the company than handles yalls 401k?

Yes. Anyone can call Vanguard and withdraw their money now.

 

[Crazy Trucker]

Yes. Anyone can call Vanguard and withdraw their money now.

Might even be able to do it on Vanguards website.

 

[dsh69]

Might even be able to do it on Vanguards website.

Tried doing it on the website. It was more convoluted.

Calling them resulted in a professional call with an English speaking representative that was more than happy to move my money for me

 

[dsh69]

Wanted to attach this to an existing thread but couldn't find one that fit


CARES Act Extends HSA, FSA, and HRA Flexibility with Additional Eligible Expenses

On Friday, March 27, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

The CARES Act includes important provisions for users of health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs), specifically:

Over-the-counter drugs and medicines not prescribed by a physician can now be reimbursed pre-tax.

Menstrual care products are now considered eligible expenses. Examples include tampons, pads, liners, cups, sponges, or similar products.

Health plans can now cover telehealth services pre-deductible without impacting HSA eligibility.

The changes to eligible expenses are retroactively effective January 1, 2020.

The CARES Act is a part of the $2 trillion stimulus package aimed at providing additional relief during the coronavirus pandemic.

For more information on coronavirus and safety measures, please visit the Centers for Disease Control and Prevention.

My take on this is that you can now walk into a pharmacy/grocery store and buy OTC drugs like AlkaSeltzer, ibuprofen, etc., and use your pretax HSA or Flex Spending account.

This was NOT the case before the CARES Act. Now, whether your FXF Flex Spending card will work, I don't know. Haven't tried it yet. But if not, those of you that like to accumulate receipts and file with your taxes, can now do so for every little OTC drug you buy

 

[Afdriver02]

My take on this is that you can now walk into a pharmacy/grocery store and buy OTC drugs like AlkaSeltzer, ibuprofen, etc., and use your pretax HSA or Flex Spending account.

This was NOT the case before the CARES Act. Now, whether your FXF Flex Spending card will work, I don't know. Haven't tried it yet. But if not, those of you that like to accumulate receipts and file with your taxes, can now do so for every little OTC drug you buy

Thanks to the new standard deductions under trump I don’t keep receipts anymore.