Weekly HSA News – February 19, 2024

States With IRS Tax Deadline Extensions
Tax Day 2024 is April 15. However, each year, the IRS extends tax deadlines for taxpayers in designated areas impacted by severe storms and natural disasters. The new tax deadlines may be different for different states. Here’s a list of states with IRS tax deadline extensions for 2023 federal income tax returns and other details you need to know if you’re in an impacted area.   Read More
IRS: Michigan Taxpayers Impacted by Severe Storms, Tornadoes and Flooding Qualify for Tax Relief; Various Deadlines Postponed to June 17
The Internal Revenue Service announced tax relief for individuals and businesses in parts of Michigan affected by severe storms, tornadoes and flooding that began on August 24, 2023. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns, make tax payments, and make 2023 contributions to IRAs and HSAs.   Read More
DOL Fiduciary Proposal Slammed During GOP-Led House Hearing
The Department of Labor’s proposed fiduciary rule came under harsh criticism during the House of Representatives Education and Workforce Committee’s second hearing on the retirement security rule which seeks to extend fiduciary duty to insurance agents and broker-dealer register representatives. Currently they are able to use exemptions from the fiduciary legal standard.   Read More
It’s Tax-Preparation Time. What Every Owner Needs to Do Now.
HSA owners must limit their withdrawals to qualified products and services and file the appropriate paperwork to receive the full tax benefit. And that paperwork is part of a personal income tax return, which many taxpayers are working diligently to complete by the spring deadline. Here’s what you need to know to gain the full tax benefits of your HSA for 2023.   Read More
Key Steps Employers Should Take (Before DOL’s ‘Complicated’ New Fiduciary Rule Is Final)
Until recently, employers’ fiduciary responsibilities for managing their retirement plans have been fairly straightforward. But the DOL’s proposed new rules could hold plan sponsors responsible for ensuring that retiring employees receive appropriate fiduciary investment advice long after they retire. Here are key steps employers should take before the rules are finalized.   Read More
Health Care Costs Climb for Retirees. See How Much They Need to Save, Even with Medicare
What would you and your spouse do with $351,000 when you retire? That may sound like a nice nest egg, but you may need every penny just to cover health care costs in retirement, including Medicare premiums and drugs after insurance pays its part, according to recent research. And that figure is conservative, the research notes.    Read More
Retirees: How to Save on Healthcare Costs That Medicare Doesn’t Cover
Medicare is undeniably a cornerstone for healthcare costs in retirement, but it doesn’t cover everything. Being aware of its limitations is important for retirees, so you’re not caught off guard by a huge bill you aren’t prepared to pay. Here are some options for covering those healthcare costs that Medicare won’t cover. For example, invest in a Health Savings Account.   Read More
Is an HSA the Best Way to Save for Future Medical Expenses?
Is contributing to an HSA now the best way for me to fund my medical expenses in retirement? Investing in an HSA in your 30s, 40s, 50s and even 60s can go a long way toward mitigating the risk of financial ruin due to health-related expenses as you age.   Read More
3 in 4 HSA Participants Could Be Making a Huge Mistake
According to a recent report, 76% of HSA participants spent their contributions on healthcare expenses. But the way to get the most benefit from an HSA is to contribute to one of these accounts, invest your balance, and let it grow tax-free for as many years as possible.   Read More
This Was the Average HSA Balance at the End of 2023
As of the end of 2023, the average HSA balance was $4,380, up from $3,930 at the end of 2022. It’s a great thing to contribute more each year than you did the last year. And since HSA contribution limits tend to increase from one year to the next, it’s possible to do that even if you’re already maxing out. But you don’t simply want to keep funding your HSA and call it a day.   Read More