The CARES Act was signed into law on March 27, 2020. Some guidance has been issued but more guidance is
needed in many areas, so we are keeping this ALERT simple. The provisions are effective immediately. Some
provisions are of limited duration. It remains to be seen if the restrictions will change.
|
Provision |
Change |
Act Section |
Effective |
|
Special rules for use of retirement funds |
Coronavirus related distributions for any taxable year can not exceed $100,000; controlled group rules apply; 10% early distribution penalty waived; can be repaid within three years Employer can rely on employee certification Such distribution can be includable in taxable income ratably over a three-year period Loans to “qualified individuals” up to $100,000 rather than $50,000 Loan repayments for existing loans can be delayed one year |
2202 |
Coronavirus related distributions after January 1, 2020 and before December 31, 2020
Loans made before September 23, 2020. |
|
Temporary waiver of 2020 RMD |
2020 RMDs waived for defined contribution plans |
2203 |
|
|
Coverage of diagnostic testing |
No cost sharing or preauthorization for Covid-19 diagnostic tests. |
3201 |
|
|
Guidance on PHI |
Within 180 days after enactment, HHS will issue guidance on sharing patients” PHI during the public health emergency |
3224 |
|
|
Expansion of DOL Authority to postpone certain deadline |
ERISA 518 expanded to add public health emergency declared by HHS and other minor language change |
3607 |
|
|
Single employer plan funding rules |
Delays until January 1, 2021 minimum required contributions which would be due in 2020 |
3608 |
|
|
Exemption of telehealth services |
Covering telehealth services in HDHP before deductible is met is permitted |
3701 |
Date of enactment; Plan years beginning before December 31, 2021 |
|
Inclusion of OTC medical products as qualified medical expenses |
Language regarding required prescription removed and coverage of menstrual care products added |
3702 |
Amounts paid after December 31, 2019 |
| Disclaimer: This material is for the sole purpose of providing general information and does not under any circumstances constitute legal advice and should not be used as a substitute for legal advice. You should seek the advice of counsel when applying the requirements to your plan. For more information on this ErisaALERT contact us by phone at 610-524-5351 and ask for Mary Andersen at ERISAdiagnostics, Inc. or Paul Protos at ATR, Inc. at 610-994-7442. Mary is co-author of the Form 5500 Preparers Manual published by Wolters Kluwer. |
