Weekly HSA News – November 27, 2023

HSA Compliance Corner
Different Contributions for New Hires? Yes, but Be Sure to . . .
Employers can determine how to treat workers who become HSA-eligible after the first day of their HSA contribution year. Some employer-contribution policies require some thought around how to handle mid-year eligibility. Other policies often require no modification. Employers should make sure that they create a policy to address workers who gain eligibility after the start of the plan year, clearly spelled out the policy in plan documents and then follow their policy.   Read More
HSAs & Retirement
How a Health Savings Account Can Boost Your Retirement Savings
I’m interested in contributing to a HSA to help boost my retirement savings but would like to better understand how they work. What can you tell me? An HSA is a fantastic financial tool that can help you build a tax-free stash of money for medical expenses now and after you retire. Here’s an overview of how they work and how you can open one.   Read More
1 Fantastic Retirement Savings Account You’ll Wish You’d Heard of Sooner
One of the best retirement accounts is often overlooked, mainly because it’s not actually called a retirement account. In fact, it’s called a Health Savings Account. HSAs are intended to be used to help people with high-deductible health plans cover the costs of medical care with pre-tax dollars. But if you’re eligible for an HSA, you can deduct the money you deposit from your taxes.   Read More
6 Strategies to Help Clients Fund Long-term Health Care Costs in Retirement
Many people assume that Medicare will cover their long-term health care needs, but this isn’t necessarily the case. Here are some strategies to cover long-term health costs for your clients, and their pros and cons. One strategy is to use an HSA to set aside funds for future expenses such as premiums for Medicare and long-term care insurance.   Read More
Maximizing Your HSA
Make the Most of Your HSA Benefits and Investments in 2024
The three big tax benefits of HSAs include that your money is going into the account tax-free, then it’s growing tax-free, and then it can be withdrawn tax-free if you’re spending on qualified medical expenses. The tax benefits are really significant because the contributions you make, if pulled from your payroll, are exempt from income taxes and Medicare and Social Security taxes.   Read More
Maximizing HSAs: The Key to Staving Off a Retirement Shortfall (Especially for Women)
There are gaps in the way women and men are using their HSAs, according to one study. Although women’s and men’s utilization rates were comparable, women were more likely to take money out of their HSAs and men had slightly higher rates of savings at the end of the year. The key for employers is to emphasize education on HSAs.   Read More
A 31-year-old Millionaire Who Has 7 Different Types of Investment Accounts Says That His HSA Is ‘My Favorite by Far’ — and Explains How He’s Using It to Build Long-term Wealth
Brennan Schlagbaum paid off more than $300,000 in debt before building a net worth of nearly $2 million. He has investments spread across seven different types of accounts, but “my HSA is my favorite by far,” he says. Whatever out-of-pocket expenses they have, “we have the ability to pull that money tax-free at any point in the future. It gives us a lot of flexibility down the road.”   Read More
Consumer-Driven Health Care
It’s Benefits Season. Can You Use Your HSA or FSA for Alternative Medicine?
Apothékary, a plant-based medicine and supplement company, aims to change views on wellness and change minds about the usefulness of tax-saving HSA and FSA accounts along the way. The company offers natural alternatives to over-the-counter drugs and products, some of which qualify as medical expenses for HSAs and FSAs.   Read More