2020 Federal Actions

Many of the provisions laid out in the CARES Act were already put into place by our insurance carriers prior to the law. Please see COVID-19 Insurance Coverage Details for full information specific to your insurance coverage. 

• Repeals a rule enacted under the Affordable Care Act that prohibited over-the-counter medicines and drugs, other than insulin, from being qualified medical expenses without a prescription. For expenses incurred after December 31, 2019, participants may utilize HSA funds to cover over-the-counter medicines and drugs (e.g., ibuprofen, cold medicines), without a prescription.
• HSA funds may be used to purchase certain menstrual care products (e.g., pads and tampons) on a tax-favored basis. These products will be treated as qualified medical expenses under the new legislation. This change applies to expenses incurred after December 31, 2019. 

• HSA funds may be used to purchase personal protective equipment (“COVID-19 PPE”) used to prevent the spread of COVID19, including masks, hand sanitizer and sanitizing wipes. This amendment is retroactive to January 1, 2020.

Reliant has already established a generous leave policy for coronavirus-related missed work. Please see Coronavirus Policies & Updates for full information. 

The following withdrawal options are available with a special COVID-19 withdrawal that will soon be available for COVID-19 affected plan participants to request:

The COVID-19 tax-favored withdrawal option has the following components:

• If a COVID-19 withdrawal is taken, the typical 10% penalty tax that applies to early withdrawals does not apply.
• Standard 20% withholding is reduced to 10% withholding.
• Income taxes for the distribution can be spread over 3 years.
• Maximum amount available for an individual to withdraw is $100,000, and you may be permitted to re-contribute the amount within 3 years (as a rollover) without regard to contribution limits.
• Self-certification is available: you can certify if you have been affected by COVID-19 and are eligible for a distribution.
• This is available between now and Dec. 31, 2020.
• In order to qualify, you must certify you have adverse financial consequences from the COVID-19 pandemic or you, your spouse, or dependent have been diagnosed with COVID-19 or SARS-CoV-2. 

For more details on 401(k) withdrawals: Hardship Withdrawal

The following loan options are available for COVID-19 affected plan participants to request:

The COVID-19 tax-favored loan option(s) are as follows:

• IRS plan loan limits for participants requesting new loans have been increased to 100% of vested account balance, up to $100,000, for 180 days, beginning March 27, 2020. 
• Plan loan payments due between now and Dec. 31, 2020, are delayed for one year with this time period disregarded from the loan’s term. Subsequent payment due dates are adjusted accordingly (with interest).
• In order to qualify, you must certify you have experienced certain adverse financial consequences from the COVID-19 pandemic or you, your spouse, or dependent have been diagnosed with COVID-19 or SARS-CoV-2. 

For more details on 401(k) loans: Loans

The COVID-19 Required Minimum Distribution waiver is as follows:

• There is a temporary waiver of the RMD rules for distributions required in 2020 for defined contribution plans.
• An additional year is allowed for beneficiaries to complete their distributions if they are taking distributions under the 5-year rule.

This attachment (below) is a resource provided by Principal to provide a checklist of actions 401(k) participants can take to make sure they are protecting their retirement planning in the midst of the tumultuous financial season with COVID-19. 

Additional contribution change allowed

On May 12, 2020, in response to the COVID-19 pandemic, the IRS issued Notice 2020-29 and Notice 2020-33, providing welcome relief and guidance to employers sponsoring Section 125 dependent care assistance programs. 

Under this relief, Reliant has decided to amend our Section 125 plan to allow employees who are eligible to make salary reduction contributions under the plan to make the following prospective election changes during the 2020 calendar year:

• Employees may make a new election
• Employees may decrease or increase an existing election

How do I change my contribution?

1. Carefully consider your current and possible childcare needs.
2. Review the details of how funds can be used and what happens to any remaining funds at the end of the calendar year, which can be found here: Child-Care Benefit. 
3. Use the Cafeteria Plan Enrollment Form to make your desired change.
   1. Changes made by May 31st will impact the 6/15 paycheck.
   2. Any changes after May 31st will be processed according to normal payroll deadlines.