| News from Washington |
| DOL’s New Fiduciary Rule Is Out The Department of Labor’s new fiduciary rule is out despite strong industry pushback and opposition by Republicans in Congress. Opponents of the proposed update to the definition of “investment advice” will almost certainly be disappointed, as the DOL generally only made clarifications rather than substantive changes. The new rule takes effect September 23, although many provisions will not be enforceable until April 2025. Read More |
| Analysis of the Final Fiduciary Rule |
| What’s in the Final Retirement Security Rule? The Department of Labor’s final retirement security rule covers many of the same elements as the initial proposal, but contains key changes, such as exemptions for educational materials and the removal of discretionary authority as an automatic trigger of fiduciary status. Here is a look at the details of the official rule posted April 25 in the Federal Register. Read More |
| 8 Important Changes in DOL’s Final Fiduciary Rule Now that the Department of Labor’s final retirement security rule has been released, what changes does the final rule make to the proposed rule? Here are eight important items. Read More |
| Key Investor Lessons From the New Department of Labor Fiduciary Rule The Labor Departments final fiduciary rule is critical in the context of the shifting dynamics of retirement planning in America, where individuals are increasingly responsible for their own retirement savings, with less reliance on pensions and Social Security. What does all of this mean for investors? Read More |
| The Final DOL Fiduciary Rule Has Arrived. Here’s What It Means for Investors Assuming the final fiduciary rule is here to stay, many investors could be affected. However, we see the most benefit for two types of investors: (1) investors in small retirement plans, and (2) investors rolling assets into a fixed index annuity. We focus on these cases because the impact is likely to be significant and other situations are often already covered by similar standards. Read More |
| HSA Compliance Corner |
| Permitted Rollovers and Transfers to and from HSAs Unfortunately, federal tax law doesn’t permit rollovers of funds in employer-sponsored FSAs or HRAs to an HSA. But you can move funds from one HSA to another as often as you wish. And you can move funds from an IRA to an HSA once in your lifetime as part of a strategy of tax diversification, planning for retirement medical expenses, or jump-starting your HSA balance. Read More |
| Can New Spouse’s, Children’s Expenses Be Paid Tax-free? You can reimburse your spouse’s and tax dependents’ qualified expenses tax-free from your Health Savings Account if the family member who incurs the expense is your spouse or your tax dependent at the time of the qualified expense. And remember that they do not have to be covered on your medical plan for you to reimburse their qualified expenses tax-free. Read More |
| Industry News |
| Fidelity Hits HSA Record Amid Assets, Adoption Boom Fidelity announced that its HSAs have reached a milestone with total assets now valued at $24 billion. That marks a 44 percent annual increase in HSA assets and establishes the firm as the nation’s second-largest HSA provider. Read More |
| Best Practices |
| How to Get Gen Z and Millennials Excited About Retirement Planning Employers have to adapt to the financial preferences of Gen Z and millennials — not the other way around. By understanding their distinct challenges and views, companies can play a pivotal role in shaping their financial future for the better. Prioritizing financial education, personalized engagement programs and using mechanisms such as 401(k) auto-enrollment, employers can help to alleviate the real financial anxieties these employees face. Read More |
| HSAs & Retirement |
| Here’s Why I Treat My HSA as a Retirement Savings Plan One nice thing about HSAs is that you can access your balance at any time. But I also don’t have to use up my HSA balance by the end of the year, or by any specific deadline. Because of this, I actually make a point to treat my HSA like a retirement savings account rather than an account I access for near-term medical costs. Here’s why. Read More |
| 69% of Pre-Retirees Say Retirement at 65 Is Not Possible Most non-retired investors (69%) between the ages of 55 and 65 concur that the traditional retirement age of 65 is irrelevant to their plans, and 67% of pre-retirees anticipate encountering greater retirement hurdles than those experienced by their predecessors, according to a recent survey. 41% of pre-retirees said out of necessity, they would keep working in retirement for additional income, while 27% said to achieve retirement goals they would have to live frugally. Read More |
| Maximizing Your HSA |
| You May Have Access to This Amazing Savings Account in 2024 — Even if You Didn’t in 2023 HSAs are a bit more exclusive than regular savings accounts in that you need to meet certain criteria via your health coverage to be able to fund one. But if you’re eligible for an HSA, you stand to benefit in a really big way. So even if you didn’t have HSA access in 2023, it pays to see if things have changed for 2024. Read More |