| News from Washington |
| IRS Announces Tax Relief for Taxpayers Impacted by Tornadoes in Ohio; Various Deadlines Postponed to September 3, 2024 The Internal Revenue Service announced tax relief for individuals and businesses in Ohio that were affected by tornadoes that began on March 14, 2024. These taxpayers now have until September 3, 2024, to file various federal individual and business tax returns, make tax payments, and make 2023 contributions to IRAs and HSAs for eligible taxpayers. Read More |
| Bills to Nullify the Retirement Security Rule Proposed in Congress Members of the House and Senate introduced companion bills under the Congressional Review Act that would nullify the Department of Labor’s Retirement Security Rule which was was finalized in April. The CRA bills would render the rule with “no force or effect,” if passed. Read More |
| HSA Compliance Corner |
| Operating HSAs & HDHPs in Puerto Rico With the IRS’ recent announcement of the 2025 HSA amounts, this is a good time to answer the recurrent question of whether HSAs and HDHPs can be operated in Puerto Rico. Yes, HSAs and HDHPs may be operated in Puerto Rico and the relevant administrative and tax rules are modeled after and generally consistent with those of Internal Revenue Code Section 223. Read More |
| Can a Cash-Starved HSA Owner Reclaim Part of a Contribution? I contributed the maximum to my HSA this year, but now I need some of that money back. Can I withdraw a portion of the money as a mistaken contribution without tax consequences? No. Unless you contributed more than your maximum, any distributions are included in your taxable income plus a 20% additional tax unless you have reached age 65 or are disabled. Read More |
| Should Gym Memberships Be a Qualified Medical Expense? The state of Americans’ health has plunged over the past decades. We know the effect of exercise and healthy lifestyles on maintaining or regaining health. To what extent do changes to the federal tax code incent behavior that’s far too lacking in the country today? And is the tax code an effective vehicle to nudge people into activity in which they’re not now engaging? Read More |
| Best Practices |
| Decoding High-Deductible Health Plans and HSA-Compatible Plans The landscape of health benefits is evolving, and HSA-compatible plans offer unique advantages over traditional health plans. By carefully weighing the costs, tax benefits, and support they offer to employees, you can make an informed decision about which plan type best suits your organization and your employees’ health and financial wellbeing. Read More |
| Enhancing Employee Benefits: The Case for Evolving HSA Contribution Strategies In a world where the pull between financial stability and unforeseen healthcare expenditures is a recurrent theme, HSA contribution strategies stand as the bridge that can either bolster or diminish employee engagement. The shift from seed contributions to the more dynamic and rewarding match or auto contribution strategies is not just a financial acumen; it’s a proactive step towards cultivating a healthier and more vested workforce. Read More |
| Health & Wealth Benefits: Merging Together as the Ultimate Power Duo The interconnected nature of health and financial well-being creates the opportunity to positively impact employees and the business as a whole. Confirmed by multiple studies, incorporating enhanced well-being programs into the workforce can help businesses to understand the unique needs of their employees, allowing them to reach their full potential. Read More |
| HSAs & Retirement |
| Health Crises Force Early Retirement More Than Any Other Problem A new study from TIAA found that “health shocks” cause Americans to speed up their retirement far more than any other reason. TIAA’s findings show how important it is to factor in a client’s health history — and their family’s — when making plans for their retirement. Read More |
| America Is Hurtling Toward a Gray Trap It’s little surprise that America is rapidly getting older — but now that we’re at the brink of that demographic shift’s major consequences, we’re still completely unprepared. It’s not just that seniors are an increasing share of the population, which is a huge challenge in itself. The seniors of the future may also require care for longer, and aging inequalities are becoming more stark. Read More |
| 5 Ways to Secure Your Retirement Before Social Security Is Projected to Start Cutting Benefits in 2035 The 2024 Social Security and Medicare Trustees annual report projects that the program’s trust fund reserves will be depleted by 2035. If officials don’t find a way to get more money into the system, substantial benefit cuts for retirees across the board could result. Here are five steps to take that will help you navigate retirement without relying on Social Security. Read More |
| Maximizing Your HSA |
| FSA vs. HSA: What to Know About the Accounts That Pay Medical Costs Two types of accounts–FSAs and HSAs–can help you pay for medical costs and have tax benefits, but both also have possible downsides, two recently published reports found. They’re related, though they have some big differences. Here are some questions and answers about these health accounts. Read More |
| Consumer-Driven Health Care |
| Advice for Handling Healthcare Bills There are things you can do to lessen the impact that medical expenses have on your life and your budget if the idea of such an expense worries you about your financial situation. To better control your present and future medical costs, adhere to these five steps. Read More |