Vision Payroll

The IRS recently issued Notice 2008-82 which provides guidance on the recently enacted §114 of the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act). The HEART Act amended §125 of the Internal Revenue Code of 1986 (IRC) to allow distributions of unused amounts in a Health Flexible Spending Arrangement (Health FSA, also called a 125 or cafeteria plan) to reservists ordered or called to active duty. In addition to providing guidance on “qualified reservist distributions” or QRDs, the Notice provides a transition rule allowing plans to be retroactively amended for QRDs made before January 1, 2010. Contact Vision Payroll if you have any questions on Notice 2008-82.