Weekly HSA News – May 22, 2023

News from Washington
IRS Gives Big Boost to HSA, HDHP Limits in 2024
Thanks in part to persistent high inflation, employees will be able to sock away a lot more money in their HSAs next year. The annual limit on HSA contributions for self-only coverage will be $4,150, a 7.8 percent increase from the $3,850 limit in 2023. For family coverage, the HSA contribution limit jumps to $8,300, up 7.1 percent from $7,750 in 2023.   Read More
Couples Can Soon Put Over $10,000 a Year Into Health Savings Accounts
Thanks to the largest ever increase in the amount Americans can set aside in Health Savings Accounts, an older married couple could sock away $10,300 a year in 2024, up from $9,750 this year. In the last 10 years leading up to retirement, a couple could accumulate more than $100,000 in these accounts.   Read More
Federal Appeals Court Freezes Decision Striking Down Free Preventive Health Services
A federal appeals court on froze a lower court decision that scrapped the Affordable Care Act’s requirement that employers fully cover the cost of preventive health care services, such as certain cancer screenings, behavioral counseling, HIV prevention and other services recommended by the U.S. Preventive Services Task Force.   Read More
HSA Compliance Corner
HSAs, HRAs, and Medicare Creditable Prescription Coverage
Millions of Americans age 65 or older remain covered on an employer-sponsored medical plan and have deferred Medicare. Among them, many do so because they want to remain eligible to fund a Health Savings Account. But what happens when this desire collides with a concept known as Medicare Minimum Creditable Coverage? Here’s a closer look at this topic.   Read More
My Husband Died and His HSA Funds Were Sent to Me. Do I Have to Pay Taxes on It?
My husband died and did not leave a will, so I established an estate and I’m the administrator. I found an HSA and they sent me a check made out to me for the amount in his account. Is this my personal money? Will I have to pay the taxes as if the money was given to me for my personal use? Since the check was made payable to you, that suggests your husband named you as beneficiary. If that is the case, the estate is not a party to these funds.   Read More
HSA Best Practices
Matchmaker, Matchmaker . . . Match My HSA Contribution
Most companies contribute to employees HSAs, particularly in the early years. But few companies offer matching contributions, preferring instead to give a flat-dollar amount. Yet any company whose employer contributions are governed by a Cafeteria Plan can match employees’ HSA contributions. Should they?   Read More
Helping Employees Navigate Phased Retirement
Many individuals would like to phase into full retirement by working fewer hours with more flexible schedules, while others want to stay in the workforce longer. In light of this, employers are becoming more open to offering flexible working arrangements, but they should also remind employees about the benefits of having and contributing to an employer-sponsored retirement plan and HSAs.   Read More
The HSA Market
The Healthcare Plan Most People Should Buy—and Why They Don’t
Every fall over 100 million families can choose a health plan. The decision is horrendously complex, and we are universally terrible at it. People choose plans that don’t fit their situation based on bad assumptions and predictions, or they blindly stay with what they have. In the end, for most people one simple type of plan makes the most sense, with some important caveats.   Read More
HSAs & Retirement
45% of Americans Say a Health Issue Upended Their Retirement. Do This to Avoid That Fate.
In a recent survey, 45% of respondents said a health issue upended their retirements. If you want to avoid a similar situation, make sure to set aside funds for healthcare spending so you’re not forced to scramble. It’s more than possible to put extra money into an IRA or 401(k), but an even better bet may be to contribute money to an HSA if you’re eligible to do so.    Read More
Health Care Costs in Retirement
The average couple may need $315,000 to cover health care costs in retirement. Medicare can help cover health care costs in retirement, but it won’t cover everything. Handling the high costs of health care in retirement takes preparation and discipline. Financial experts versed in health care costs advise taking the following five steps to cover costs.   Read More
Maximizing Your HSA
HSA Benefits That May Surprise You
You have likely heard of Health Savings Accounts and you may even understand the basics of how an HSA works. These accounts are really not too complicated. Beyond these basics, there are many advantages that an HSA can offer that many people are not aware of. Here is a list of the surprising benefits that you get with an HSA.   Read More
The 1 Rule I Insist on Following for My HSA
Since opening our HSA, I’ve incurred my share of medical costs. But I haven’t yet tapped our HSA to cover them. That might seem like a silly thing to do when the money in my HSA is clearly there. But when we opened our HSA, I put one rule in place: Do not touch the money unless it’s an absolute emergency. And it’s a rule I hope to uphold until retirement rolls around.   Read More
Here’s What Happens to Your HSA if You Change Jobs
What will happen to the money in your HSA if you’re laid off or accept a job with another company? Fortunately, like with a 401(k), you have options. They include leaving the funds in the account with the current financial institution or moving the funds to another financial institution through a “transfer” or a “rollover.” Although the process is different the outcome is the same.   Read More
Consumer-Driven Health Care
It’s Mental Health Awareness Month. Here Are 3 Ways to Use Your HSA to Access Care
It’s unfortunate that mental health services can be out of reach for many people due to the cost involved, but if you have a Health Savings Account, it can be your ally in accessing care. Here are a few of the things you can do with your HSA, for the betterment of your mental health.   Read More