The CARES Act and Other Important Changes

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, is a package of measures introduced by the Senate in response to the COVID-19 pandemic. Within the bill are provisions that may help faculty and staff who may be enrolled in our retirement plans (e.g., 403(b) and 457(b)), and flexible spending health accounts. We have highlighted a few key items below, but for more details, you may contact your tax advisor or visit the U.S. Department of the Treasury website.

Highlights

Cash Payments 

Economic impact payments (or stimulus checks) were distributed to Americans in April. If you were eligible for a payment, but have not yet received it, you may inquire with the U.S. Treasury via the IRS website. 

Unemployment Assistance

Currently, unemployment insurance provides an additional $600/week payment to each recipient through July 31, 2020, and an additional 13 weeks of unemployment benefits through Dec. 31, 2020, for those who remain unemployed after state unemployment benefits are no longer available. For more information, visit The Department of Labor and Economic Opportunity website.

Flexible Spending Accounts (FSAs)

• The law allows for the use of healthcare FSA funds to purchase certain over the counter (OTC) drugs and medicine without a physician's prescription. The law also adds personal care products to the list of OTC items eligible for reimbursement. For questions, please contact Kathy McCoy at fw0481@wayne.edu or Discovery Benefits by visiting their website or calling 1-866-451-3399.
• Flexible Spending 2019 Plan Year: The April 30, 2020, claims documentation deadline has been extended 60 days until the national emergency is declared over. Remember, in order to get reimbursed for healthcare and dependent care expenses, the expenditures must be incurred and paid (not billed or prepaid) during the applicable 2019 coverage period.

Retirement Account Changes

For those impacted by Coronavirus:

• Withdrawals - Participants can take a retirement plan/account withdrawal through December 31, 2020, without the 20% mandatory federal tax withholding or the 10% early withdrawal penalty.
• Loans - Eligible loan amounts through September 23, 2020, are revised from 50% to 100% of your vested balance, up to $100,000 (still requires collateral for collateralized loans). Through December 31, 2020, participants can request a suspension of loan repayments for up to one year.

Who is eligible?
You are considered eligible to take distributions and loans from your retirement plan if any of the below conditions are met:  

• You have been diagnosed with COVID-19 by a test approved from the Centers for Disease Control and Prevention (CDC)
• You have a spouse or dependent who has been diagnosed with COVID-19
• You suffer financial consequences as a result of quarantine, employment furlough, layoffs, reduced work hours or cannot work due to lack of child care as a result of coronavirus
• You experience a financial loss to an individually owned or operated business that is caused by a closing or reduction of hours due to coronavirus
• Other factors as determined by the Secretary of the Treasury or his delegate

We recommend contacting your TIAA or Fidelity financial consultant to review your current situation, along with your short and long-term financial goals, before making any decisions. 

TIAA CREF Financial Services
www.tiaa.org/events
1-800-732-8353

Fidelity Financial Services
www.fidelity.com/atwork/reservations
1-800-642-7131                

Virtual Doctor's Visit (Telehealth)

All telehealth visits through Amwell, Teledoc, or BCBSM online, including those unrelated to COVID-19, will be covered at 100% with no out-of-pocket costs for all WSU healthcare plans through June 30, 2020 (extension of  $0 co-pay).  

Other Changes to Consider

• The Treasury has extended federal tax filing and IRA contribution deadlines to July 15, 2020.
• Borrowers who have certain federal student loans have the opportunity to defer payments until later in the year.

Please consult your personal tax advisor or your loan provider for additional information.