Weekly HSA News – May 13, 2024

IRS Releases Health Savings Account Amounts for 2025
The IRS published the inflation-adjusted HSA contribution limits and high-deductible health plan requirements for 2025. For the coming year, the annual contribution limit for individuals with self-only coverage under a high-deductible health plan is $4,300. The annual limit for individuals with family coverage is $8,550. The $1,000 catch-up contribution amount remains unchanged.   Read More
DOL May Not Have the Authority Over IRAs It Thinks It Has
Rollovers between IRAs might be low hanging fruit for opponents of the Retirement Security Rule, finalized by the Department of Labor in April. Legal experts with varying perspectives on the rule agree that the DOL likely does not have authority to apply fiduciary duties under Title I of the Employee Retirement Income Security Act to IRAs.   Read More
HSA Participants End Q1 with Higher Balances, Contribution Rates
HSA holders are saving more of their contributions according to a quarterly report from Bank of America. In the first quarter, nearly 4 in 10 account holders saved more of their contributions, compared to less than a quarter who did so in the fourth quarter of 2023. Among Millennials, those who saved more of their HSA contributions jumped to 47% in the first quarter—the most of any generation—up from 34% in the fourth quarter of 2023.   Read More
Federal Agency Conducts “Hit Job” on Health Savings Accounts
If your goal is to write a critical report of Health Savings Accounts, it’s possible to selectively focus on some aspects of the program and weave a narrative that the program isn’t a perfect solution for employees. And that’s what this report from the CFPB does. The criticisms are a combination of incorrect or outdated information and correct information with incorrect conclusions. Let’s attack each of the seven critiques in the executive summary.   Read More
You Can Preserve an HRA Balance and Try an HSA if . . . 
A Suspended HRA is the perfect design for a company that wants to encourage employees who’ve accumulated HRA carryover balances to test-drive an HSA without losing future access to the HRA balance. The Retirement HRA is a more versatile account that can achieve that goal and be part of a broader program to help workers prepare for medical expenses in retirement.   Read More
Time: Best Health Savings Accounts in May 2024
Here are Time’s best HSA providers in 2024. All of the HSAs recommended offer basic services for spending and managing receipts, no account minimums, investing options, and mobile account access. Account variables such as transparency, fees, minimum investment thresholds, quality and number of investment options, and default cash interest rates are the basis of our evaluation.   Read More
How You Can Tackle Health Care Costs in Retirement
It’s safe to say health care costs will take a decent chunk from your retirement fund. But don’t let the numbers paralyze you. There are small steps you can take now to help you become more financially secure in retirement. If your employer offers a health plan that is HSA-eligible, consider enrolling. Contribute on a pre-tax basis, then let your funds grow as long as you can.   Read More
Schroders’ Retirement Study Finds Inflation Taking Toll on Retirees
With inflation remaining stickier than anticipated, the impact of rising prices lessening the value of savings is weighing heavily on the minds of retirees. According to the Schroders 2024 US Retirement Survey, less than half (44%) of Americans in retirement believe they have saved enough, 24% are unsure, and 32% are convinced they have not accumulated enough savings.   Read More
Suze Orman says an HSA is ‘one of the best retirement accounts out there.’ Here’s why she thinks that — but is she right?
Financial advisor and author Suze Orman says an HSA is “one of the best retirement accounts out there. Can you imagine putting money in and getting a tax write-off for it and using it tax-free? There is not one other retirement account that offers that benefit,” Orman said during an episode of her podcast, “Women & Money.”   Read More
Hospitals Are Refusing to Do Surgeries Unless You Pay in Full First
More hospitals and surgery centers are demanding patients pay in advance. Although good for hospitals, it is distressing to patients who must come up with thousands of dollars before surgery. Those who can’t come up with the sums have been forced to put off procedures. Some who paid up discovered later they were overcharged, then had to fight for refunds.   Read More