| News from Washington |
| IRS: Maine Taxpayers Impacted by Severe Storms, Flooding Qualify for Tax Relief; Various Deadlines Postponed to July 15 The IRS announced tax relief for individuals and businesses in parts of Maine affected by severe storms and flooding that began on January 9, 2024. These taxpayers now have until July 15, 2024, to file various federal individual and business tax returns, make payments, and make 2023 contributions to the IRAs and HSAs. Read More |
| IRS Announces Tax Relief for Taxpayers Impacted by Severe Storms, Flooding in Rhode Island, Various Deadlines Postponed to July 15 The IRS announced tax relief for individuals and businesses in parts of Rhode Island that were affected by severe storms and flooding that began on December 17, 2023, and January 9, 2024. These taxpayers now have until July 15, 2024, to file various federal individual and business tax returns, make tax payments, and make 2023 contributions to their IRAs and HSAs. Read More |
| HSA Studies & Analysis |
| HSA Deposit Rate Update – March 2024 As of March 31st, 2024, HSA providers are paying an average rate of 0.43% at the $1,000 balance threshold, an increase of 1 basis point from December 2023, according to a new analysis by Devenir. At the $10,000 balance threshold, the average rate is up to 0.54%, an increase of 2 basis points from December 2023. Read More |
| Segal Unveils 2024 State Employee Health Benefit Study and Interactive Plan Comparison Map Tool Segal released its 2024 State Employee Health Benefit Study alongside an interactive map revealing state-by-state comparisons of health benefit plans. The study reveals that 33 states offer an HSA-qualified plan option. Of those, 23 contribute to employees’ HSAs, at an average employer contribution amount of $531 annually in 2023. Read More |
| HSA Compliance Corner |
| Does Your Spouse’s Health FSA Affect Your HSA Eligibility? I’m enrolled in my employer’s HSA-qualified plan that covers my wife and me. My wife waived medical coverage through her employer but enrolled in her company’s general Health FSA through her employer. Am I eligible to contribute to my Health Savings Account? Unfortunately, no, your wife’s enrollment in her employer’s Health FSA disqualifies both of you from an HSA. Read More |
| Can Your Employer Force You to Enroll in Medicare? Company Size Is a Factor Medicare presents some challenges for older workers. Working seniors want to know whether it is legal for their employers to force people off the employer plan and onto Medicare. The answer usually depends on how many employees work for their employer. Read More |
| Can an HSA and HRA Be Paired Together? Employers offering a high-deductible health plan sometimes offer participants a Health Reimbursement Arrangement to buy down the deductible or provide other coverage. The HRA design will determine whether participants in the high deductible plan can also maintain eligibility to contribute to an HSA. Here are three of the most likely combinations. Read More |
| HSA Industry News |
| Lively HSA Account Holders Boast 2x Investing and 17% Higher Account Balances Than Industry Average Lively, Inc. release of its sixth annual HSA Snapshot report, which tracks HSA account holders’ saving, spending, and investing. The report found that Lively’s annual account balance of funded accounts is $4,885, which is 17% higher than the industry average. Lively account holders invest nearly 2x the industry average and retain more of their HSA assets than the industry average at 25% compared to 23% industry wide. Read More |
| Ascensus to Acquire Mutual of Omaha’s 401(k) Business Ascensus announced it will acquire Mutual of Omaha’s 401(k) recordkeeping business after providing outsourced retirement services to the firm for more than 20 years. With the deal, Ascensus will take over 2,300 retirement plans, 65,000 participants and more than $3.9 billion in assets under administration. The deal is expected to close in this year’s third quarter. Read More |
| Market Trends |
| Millennials Don’t Plan on Retiring at 65 — Here’s Their New Strategy According to a new survey, more than half of millennials believe retirement means financial independence, not reaching a set age. Additionally, nearly 17% say they don’t anticipate leaving the workforce fully; rather, they envision having more flexibility in their careers, whether that’s working part-time, starting a business or pursuing a passion project. Read More |
| Podcast: Mulready Minutes In this episode, Oklahoma Insurance Commissioner Glenn Mulready visits with Katy Spangler, Principal at Spangler Strategies, delving into the present landscape of Health Savings Accounts. Their discussion includes intended applications and benefits of an HSA. Read More |
| HSAs & Retirement |
| Got $157,500 to Spend on Healthcare in Retirement? If Not, Then Do This. Last year, Fidelity estimated that the typical 65-year-old person retiring in 2023 would spend $157,500 on healthcare throughout retirement. If you’re worried about paying for healthcare as a retiree, you could always pad your general savings. But a better bet may be to fund an HSA during your career and leave your balance untouched. That way, you can ideally bring a nice sum of money into retirement that’s earmarked for medical bills. Read More |
| The Retirement Savings Reality Gap Grows — Again U.S. adults now estimate they’ll need an average of $1.5 million to retire comfortably, up 15% from the 2023 estimate, according to new survey data from Northwestern Mutual. The adults surveyed have actually saved $89,300 for retirement. That’s 1% lower than the average survey participants reported a year ago. The gap between what the survey participants think they’ll need and how much they’ve saved has increased 16%, to $1.4 million. Read More |
| Do You Need $1.5M to Retire? 5 Experts Weigh In on the New Magic Number We asked several retirement experts what they make of the nearly $1.5 million figure and why it has grown so quickly. The experts also offered insights into what savers should keep in mind about “magic numbers” and other potentially misleading averages in overall retirement planning. While each expert offered a distinct take on the survey data, they all agreed that savers are better off focusing on a holistic approach rather than pursuing a single magic number. Read More |
| All You Need to Know About Tax-Advantaged Accounts If you’re trying to save money on your tax bill, you may want to consider opening and funding a tax-advantaged account. It may be tax free, tax deferred, or offer other types of tax benefits, such as tax credits. Tax-advantaged accounts can save you considerable money over your lifetime, so you should aim to maximize their use to minimize your tax bill. Here is a guide to the most common types of tax-advantaged accounts. Read More |
| Maximizing Your HSA |
| 3 Tips to Help Employees Reduce Taxes With an HSA If your company offers a qualifying high-deductible plan and an HSA, take time to educate employees about how this tax-advantaged account allows them to set aside pre-tax dollars to pay for eligible health-related expense. As tax time approaches, here are three ways employees can use their HSA to reduce their tax liability and support their health. Read More |
| Why an HSA Account May Benefit You There’s an employer-sponsored account that can help you build wealth that you may qualify for but probably aren’t taking advantage of. No, I don’t mean your 401(k), I mean a Health Savings Account. You could be building stacks of tax advantaged cash right now. Money that you can grow with the markets to help pay for medical expenses down the line. Read More |