Setting up a Tax-Free Emergency Fund using Section 139

Section 139 in the Internal Revenue Code
FEMA (Federal Emergency Management Agency) has declared the status of Major Disaster for many states in the United States. This has triggered Section 139 in the Internal Revenue Code.

This law allows an employer to provide benefits to cover expenses directly incurred from the Covid-19 Pandemic on a tax-free basis and the expenses incurred are fully deductible.

Common expenses include the following:

  • Non-medical, health-related purchases
  • Child care services and tutoring expenses
  • Increased cost of home supplies and utilizties
  • Food and grocery delivery services
  • Home office equipment and accesssories

PLEASE NOTE: ALWAYS CONSULT WITH YOUR TAX ADVISOR. THIS INFORMATION IS NOT INTENDED TO BE USED AS LEGAL ADVICE.

Here at Twic, we’re hoping to help you simplify this process.

Our team has worked tirelessly over the pat weeks to augment our platform to support the delivery of this Emergency Fund.

For those in need, we’re looking to provide the tools for administering this Fundat-cost with no implementation fees.

The scope of services include:

  • Fund administration and delivery through a dedicated member portal and a virtual, pre-programmed debit card.
  • Program policy and plan document generation.
  • Customized list of eligible expenses
  • Unused funds returned when the program ends.

 

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