| News from Washington |
| IRS: Kentucky Storm Victims Qualify for Tax Relief; Various Deadlines Postponed to November 1 The Internal Revenue Service announced tax relief for individuals and businesses in parts of Kentucky affected by severe storms, straight-line winds, tornadoes, landslides and mudslides that began on April 2, 2024. These taxpayers now have until November 1, 2024, to file various federal individual and business tax returns, make payments, and make 2023 contributions to IRAs and HSAs. Read More |
| IRS: West Virginia Storm Victims Qualify for Tax Relief; Various Deadlines Postponed to November 1 The IRS announced tax relief for individuals and businesses in parts of West Virginia affected by severe storms, straight-line winds, tornadoes, flooding, landslides and mudslides that began on April 2, 2024. These taxpayers now have until November 1, 2024, to file various federal individual and business tax returns, make payments, and make 2023 contributions to IRAs and HSAs. Read More |
| HSA Studies & Analysis |
| Inspira Financial Report Finds Over $1 Million Can Be Saved With a Health Savings Account A new report by Inspira Financial finds individuals can save more than $1 million in their HSA over one’s career, and families can save twice as much. Developed in collaboration with Employee Benefit Research Institute, the report examines how effective HSAs can be in helping employees save for their medical expenses in retirement independent of Medicare and employer retirement programs. Read More |
| HSA Veteran Sees Plenty of Room to Grow Steve Neeleman, founder and Vice Chair of HealthEquity, recently told securities analysts that there’s “a lot of room to grow.” He said that HealthEquity now provides HSAs for fewer than 35% of the people covered by its health plan partners. Plan participants’ HSA adoption rates tend to rise over time as the participants learn more about HSA tax benefits, he said. Read More |
| HSA Compliance Corner |
| Must I Establish a Trust to Open a Health Savings Account? You cannot open a Health Savings Account with just any financial institution and cannot designate just any checking or savings account as your HSA. You must open an HSA with a financial institution approved to administer HSAs. If your preferred financial institution doesn’t offer HSAs, you must choose another institution to set up your account. Read More |
| Industry News |
| Devenir Launches HSA Research Hub Devenir has launched its new HSA Research Hub. This new resource offers the latest insights and trends in the Health Savings Account industry. Explore in-depth reports, data analysis, and expert perspectives to stay informed and make data-driven decisions. Read More |
| Market Trends |
| Plan Sponsors Increasingly Offer Financial Adviser Services More plan sponsors are pointing participants to financial advisers, according to a new survey. At the moment, 64% of plan sponsors offer advisory services to participants, and another 17% are considering an option. The financial planning connection is being driven in part by participants, with a separate survey showing that 70% say they would use an advisory service if offered. Read More |
| Medicare Fears Grip America: Nearly 3 in 4 Adults Under 65 Worry the Federal Health Insurance Won’t Be Around for Them According to a new survey, the vast majority of people under 65 (73%) fear Medicare will not be around to support them when needed. It’s a jump from 67% in 2022. The survey underscores the growing fear many have of being unable to afford the health care costs of a longer life. And some experts predict that there won’t be enough programs in place to support them. Read More |
| HSAs & Retirement |
| Analysis Shows US Couples Aged 65-plus Need $350,000 in Savings to Cover Health Care Expenses in Retirement — Here’s Why It’s so Expensive Health care is often one of the biggest expenses Americans face in retirement. It’s a sad reality that health tends to decline with age, and unfortunately Medicare doesn’t fully cover all care costs. Affording these medical expenses can be a major challenge, so it’s important to plan carefully to ensure health-care needs don’t lead to financial disaster in retirement. Read More |
| The Absolute Best Strategy for Managing Your HSA, and How It Can Help Save You a Boatload of Money in Retirement An HSA isn’t a retirement account per se. Although you can take an HSA withdrawal at any time to cover a qualified medical expense, the best strategy for managing your HSA is actually to leave that money alone until retirement. That way, you can more easily cover your healthcare bills at a time when they might otherwise constitute a huge chunk of your income. Read More |
| Can HSAs Help Bridge Coverage Gap for Early Retirees? Yes, but . . . Many Americans nearing retirement find they forgot to consider the cost of medical coverage. Medical insurance is a financial necessity, but there is no early enrollment option for Medicare. Although you can’t (in most cases) pay non-group premiums tax-free from your HSA, you can employ some strategies to reduce your net premium cost by strategic use of your HSA balances. Read More |
| Maximizing Your HSA |
| Understanding HSA Tax Benefits, and if Contributions Are Deductible HSAs are known as some of the most tax-advantaged savings vehicles designed to help you sock away money for future medical expenses. One of its main benefits is tax-deductible contributions. But it’s important to know how HSA these tax breaks work in order to avoid consequences such as tax penalties. Here are some highlights of HSAs. Read More |
| When to Max Out Your HSA, and When to Skip It Maxing out your HSA can provide a cushion to support you when a large unexpected medical bill hits. But focusing on maxing out your HSA may not always be the right decision, especially if other financial obligations like high-interest debt are weighing you down. In some cases, it’s appropriate to contribute what your budget would allow. Read More |
| How an HSA Can Help You Save on Health Care Expenses If you’re enrolled in a high-deductible health plan, consider opening an HSA. This account allows you to save money explicitly for medical expenses and the tax savings are triple. The money you invest into the account isn’t taxed, interest and investment earnings are tax-free, and you won’t pay taxes on eligible purchases. Read More |