Qualified Disaster Relief Account (QDR)

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Keep your employees safe and financially secure when disaster strikes

Under IRS Code Section 139, a Qualified Disaster Relief (QDR) account gives employers the ability to reimburse their employees for disaster-related expenses resulting from COVID-19 on a pre-tax basis. Employers may make payments to cover the increased per-employee costs such as:

  • Personal, family, living or funeral expenses incurred as a result of COVID-19
  • Expenses incurred for repair or rehab to a personal residence or repair and replacement of its contents if that expense is attributable to COVID-19

Examples of these expenses include: medical expenses incurred as a result of COVID-19, Child care expenses due to school or daycare closures, increased home utilities and expenses as individuals are at home all day working, internet or phone to connect to WiFi/intranet in order to work from home due to COVID-19, and payments to the care taker of a dependent.

Key Features of the QDR

  • QDRs are 100% employer funded
  • There is no maximum or minimum contribution and the entire amount is pre-tax to the employer and employee
  • The employer funds the debit card that employees simply swipe to make purchases, or they can submit claims for reimbursement
  • No substantiation is required for employees
  • QDRs are easy and fast to implement, providing immediate relief for people who need it most
  • QDRs serve as a great strategy for employers wanting to mitigate the number of employees taking extended FMLA under the Families First Coronavirus Response Act

QDR Account Frequently Asked Questions

Q: Can a group set the start and end date for the QDR?

A: Yes, a group can absolutely set those parameters.

Q: Who can be a care taker?

A: A grandparent, neighbor, aunt, cousin, the employee's child who is 19 or older and is not a tax dependent.

Q: Are owners exempt from participating?

A: Except for owners of C-corporations, owners of all other entities are barred from participation in tax-favored plans. This is because they would benefit twice - once as the owner of the business and again as an individual participant. This is not permitted.

If we can be of any support to you during this time or you would like to explore a QDR for any of your clients, you can get started on a quote below.

Multiple, easy-to-use options for access and account management of your employees' funds.

Quickly and conveniently pay for eligible expenses, without the hassle of filing a manual claim. With the MyAmeriflex Card, participants can access their QDR funds instantly when they swipe their card at eligible merchants. In most cases, this eliminates the hassle of having to verify the eligibility of an expense later on.

Convenience and award winning customer-service – right at your fingertips! With the MyAmeriflex Mobile App, participants can access their account from anywhere. Check balances, file a claim, or check on the status of a reimbursement, all from their mobile phone.

Account management just got easier. By logging into MyAmeriflex, participants can gain access to resources aimed at helping them maximize the value of their QDR plan. In addition to managing all aspects of their accounts, they can also access interactive how-to’s, spending calculators, and more.

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