Heroes Earnings Assistance & Relief Tax Act

The Heroes Earnings Assistance and Tax Relief Tax Act (HEART) amended the Internal Revenue Code Section 125 to allow employers to provide qualified reservist distributions (QRDs) from health flexible spending accounts (FSAs) to employee-reservists who are called to active duty for 180 or more days, or for an indefinite period of time.

A QRD is a distribution of all or a portion of the balance in an employee's account that is requested during the period that begins on the date of the call up and ends on the last date that the reimbursement could otherwise be made under the health FSA for the plan year. These distributions may be made after June 17, 2008.