COVID-19 RESOURCES FOR FSA EMPLOYEES
The CARES Act allows retirement plan participants to have greater access to their savings if they are impacted by the coronavirus.
An individual must meet at least one of the below criteria in order to be eligible
- Diagnosed with COVID-19 on a test approved by the CDC
- Whose spouse or dependent is described as above (a), or who experiences adverse financial
consequences as a result of:
- Being quarantined
- Being furloughed, laid off or having work hours reduced as a result of the virus or disease
- Being unable to work due to lack of childcare due to such virus or disease
- Closing or reduced hours of a business owned by such individual as a result of such virus or disease
- Other factors as determined by the Secretary of the Treasury or his delegate
Benefits available under the CARES Act
Coronavirus related distributions
- The retirement plan withdrawal limit is increased to $100,000 across all plans and IRAs
- 10% early withdrawal penalty and 20% tax withholding are waived
- They have the option to have withdrawal income taxed over three years with ability to recontribute within three years regardless of that year’s cap
Coronavirus related loans
- Loan limit increased to the lesser of $100,000 or all of the vested account balance
- Repayments due between the date of CARES enactment (3/27/2020) and year-end can be delayed for one year upon participant request
- Participants self-certify that they’re impacted
For more information, please contact your 403B Vendor
- TIAA-CREF: 1-800-842-2252
- Valic: 1-800-448-2542
Flexible Spending Provisions
Over the Counter Products
The CARES Act permanently reinstated over-the-counter products as eligible expenses for Health Savings Account (HSA), Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) funds without a prescription. This change takes place retroactive to January 1, 2020.
Menstrual care included as eligible
Menstrual care products were added as eligible expenses as part of the legislation. That means employees can now use their HSA, FSA and HRA funds to purchase items such as tampons, pads and menstrual sponges. This change also takes place retroactive to January 1, 2020.
With the above being said, please note, Benefit Analysis, Inc. is working with their benefit card vendor to get the card system updated. Until then, if you pay out of pocket for any OTC products, you can submit them directly to BAI at this time to firstname.lastname@example.org or through the web portal/app.