The Coronavirus Aid, Relief andEconomic Security Act, commonly known as the CARES Act, was passedby Congress in order to aid Americans with emergency relief inresponse to the economic impact caused by COVID-19. The CARES Act covers everything from individualstimulus check and small business loans to industry-wide bailoutsand hospital funding.
However, what is getting lost in the news cycle are theimportant changes that have been made to a variety of health carebenefits that impact people in real ways. Consumers need to knowhow the law affects their health savings account (HSA), flexiblespending account (FSA) and health reimbursement accounts (HRA)during this time, including some permanentchanges. HSA participants, in particular, have important changes toconsider.
1: Extended HSA deadline
As a response to the coronavirus and many businesses being shutdown, the IRS has extended the federal income tax filing from April15 to July 15, 2020. Additionally, taxpayers can defer federalincome tax payments between April 15 through July 15 without normalpenalties and interest, regardless of the amount owed.
So, what does this mean for HSAs? With this extended deadline,account holders have more time to contribute money into theiraccounts. This provides account holders a unique opportunity tocontribute more money and further use it a savings tool for futurequalified medical expenses.
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