Health Related Tax Provisions – CARES Act

The following is a summary of the relevant health related tax provisions of the Coronavirus Aid, Relief and Economic Security Act.


Use of health savings accounts for telehealth services

The bill provides that the status of high-deductible health plans (HDHPs) is protected even if there is no deductible for telehealth or remote health services for plan years beginning on or before December 31, 2021.


Over-the-counter products purchased with health savings account and flexible savings account funds

The bill provides that menstrual health products will be treated as qualified medical  expenses  for  purposes of health savings accounts, health  reimbursement  arrangements,  flexible  spending  accounts,  and Archer medical savings accounts. This rule applies to distributions from savings accounts and reimbursements for expenses incurred after December 31, 2019.

Single-employer plan funding rules

The bill provides single employer pension companies additional time to meet funding obligations. Minimum required contributions to single employer pension plans that would otherwise be due during 2020 may be deposited before January 1, 2021—at which time contributions  will  become  due  and  if  would have been due earlier, will be due with applicable interest. Further, the bill provides that plan sponsors of single-employer pension plans may elect to treat  the  plan’s  adjusted  funding  target attainment percentage for the last plan year ending before January 1, 2020 as the adjusted funding target attainment percentage for plan years which include calendar year 2020.

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