| HSA Studies & Analysis |
| EBRI Finds Increased Use of Certain Medical Services Covered by HSA-Eligible Plans A 2019 policy change by the IRS has resulted in 75% of large employers that offer HSA-eligible plans expanding their pre-deductible coverage for medications and services that help manage chronic conditions. Read More |
| HSA Compliance Corner |
| Do You Have to Substantiate HSA Expenses? No . . . I Mean Yes. HSA distributions are tax-free when they reimburse qualified medical expenses. But who determines which expenses are qualified? And how does that process take place? HSA substantiation doesn’t work as it does with Health FSAs. But don’t ignore the importance of having proper documentation to substantiate withdrawals from your account. Read More |
| One-Time IRA to HSA Rollover A friend told me that I’m allowed to rollover some of my IRA to my Health Savings Account. Is it true? Your friend is absolutely right. But there are some key things to understand and a few rules to follow. If you are eligible, once in your lifetime you are allowed to roll over part of your IRA into an HSA. Note the three phrases: if you are eligible, once in your lifetime, and part of your IRA. Read More |
| Market Trends |
| Missing Money: 35% of Gen X Has Less Than $10k in Retirement Savings Compared to previous generations, the 65 million members of Gen X are facing an especially daunting task of building their retirement savings, and many are woefully underprepared. Only one-third of employees ages 43-58 have a retirement strategy in place, and 35% have less than $10,000 set aside for their retirement, according to a recent survey. Read More |
| Nearly Half of Gen Zers Think They Won’t ‘Get a Dime’ in Social Security: Survey According to a recent survey, 45 percent of Gen Z adults between the ages of 18 to 26 said they expect to not “get a dime” of the Social Security benefits they have earned. Additionally, 39 percent of millennials said the same, compared to 25 percent of Gen X adults and 10 percent of baby boomers who agreed. Read More |
| Employer-Sponsored Insurance Costs to Rise 8.5% for 2024: Report Employers will pay more than $15,000 on average for each employee’s healthcare in 2024, according to an analysis from consulting firm Aon. Employer-sponsored insurance costs will rise 8.5 percent in 2024, up from an average of $13,906 per employee in 2023, according to Aon’s estimates published August 22. Read More |
| HSAs & Retirement |
| Using Your HSA in Retirement You may already know that an HSA can be an excellent tool to help you pay for out-of-pocket medical expenses. An HSA can also be a powerful retirement savings tool. Its flexibility allows you to use the funds for any purpose without penalty after reaching age 65. But you must weigh the benefits of using the money during retirement versus paying for medical expenses today and make an investment plan to help the funds grow by the time you retire. Read More |
| Medicare Premiums Tax Deductible? Yes—but Only in Certain Circumstances Medicare premiums are tax-deductible, but most people will not get any benefit from trying to deduct Medicare premiums, because you only are allowed to deduct the amount of your medical expenses that exceed 7.5% of your adjusted gross income for the year. But if you have an HSA, you can use those funds tax-free to pay for Medicare premiums. Read More |
| “8 Disappointing Realities of Medicare.” HSAs Help with 5+. Many Americans don’t consider medical costs when they project their expenses in retirement. Fortunately, Health Savings Accounts help owners by reimbursing many of these expenses tax-free. In fact, of the eight shortcomings in Medicare listed in a recent article, HSA owners can offset in part the consequences of at least five. Read More |
| Maximizing Your HSA |
| Most HSA Holders Are Making a Huge Mistake, Data Shows With deductibles, co-pays, and non-covered expenses, a large portion of your paycheck may be spent on medical bills. That’s why it’s so important to have funds available for these bills. So socking money away in an HSA is an option worth pursuing. But a recent survey shows that most HSA holders could be squandering an opportunity to make the most of their accounts. Read More |
| HSA Balances Grew 12% in 2022 — Here’s Why It Pays to Contribute to Yours It’s a shame that HSAs aren’t as well-known as IRAs and 401(k) plans. According to one report, HSA balances rose 12% year-over-year at the end of 2022, and the average individual account balance grew from $3,931 to $4,397 during the first six months of 2023. If you’ve been on the fence about funding an HSA, it pays to learn more about how these accounts work. Read More |
| How I Invest My Health Savings Account Christine Benz of Morningstar is happy to report that nearly a decade later, her enthusiasm for the HSA as an investing vehicle was warranted. Her assets in it have quietly and painlessly compounded thanks to the genius of automatic payroll deductions and investment compounding. Although you may choose a different path based on your own household financial situation, here’s how an HSA fits into her family’s financial plan and how she has invested the money. Read More |
| Consumer-Driven Health Care |
| Out-of-Pocket Expenses Voted Top Barrier to Healthcare Access A new survey examined U.S. adults’ biggest barriers to healthcare access. Out-of-pocket expenses were a major concern, with 53% stating this would impact their decision to not seek medical care if they needed it. While nearly half (49%) budget for out-of-pocket expenses, there were differences among generations polled. Read More |
| Older Americans Are Putting Off Healthcare Because of Financial Constraints It’s common for medical expenses to be a particular burden in retirement, since health issues tend to arise with age. But if you make an effort to save for healthcare expenses ahead of retirement, you’ll hopefully end up in a very different boat. One good option is to contribute steadily to an HSA if you’re eligible to do so. Read More |