To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. September 29, 2008 Treasury Releases New Guidance Helping Soldiers Keep Health FSAs Funds Washington, DC--The Treasury Department and Internal Revenue Service today issued Notice 2008-82, which protects reservists from losing funds in their health Flexible Spending Arrangement (health FSA) accounts after being called to active duty. The Heroes Earnings Assistance and Relief Tax Act of 2008, enacted June 17, 2008, provided a special rule allowing "qualified reservist distributions" (QRDs) of unused amounts in a health FSA to reservists called to active duty. Under the existing rules for health FSAs, distributions could only be made to reimburse substantiated medical expenses, and any funds left unspent at the end of the plan year would be lost. This special rule allows reservists to make a distribution before leaving for active duty so as not to lose those savings. The guidance clarifies that:
Notice 2008-82 is attached. -30- REPORTS |
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