| News from Washington |
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| IRS Signs Off on Employer’s Matching Contribution Allocation Proposal, Outside the 401(k) Plan The IRS has blessed an arrangement that will let workers allocate their employer’s annual retirement plan matching contribution to any one of four different accounts, including a 401(k) account, a Health Savings Account, an educational assistance program account, or a retiree health reimbursement arrangement, according to an IRS private letter ruling. Read More |
| GAO Finds Conflicts of Interest in Sale of Certain Retirement Investments The U.S. Government Accountability Office released a report which found that fiduciary oversight of individual retirement accounts and other areas related to retirement investing, including mutual funds, are rife with conflicts of interest that should be addressed by the IRS, in some cases in coordination with the DOL. Read More |
| Compliance Corner |
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| Federal Tax Law Treats Certain Business/HSA Owners Differently If your business is a C Corporation, you’re treated as a common-law employee and can fund and use an HSA just as any other employee can. If, however, you are a full or partial owner of an limited liability company (LLC), partnership, or Subchapter S Corporation, you face two limitations on how you fund your HSA. Read More |
| Do Medical-Monitoring Devices Qualify for Tax-free Reimbursement? If you’re considering (or your medical professional has prescribed) a medical monitoring device, be sure to understand whether you can reimburse that device tax-free from your HSA or Health FSA. The question doesn’t always lend itself to easy answers. Read More |
| What to Do if the $2,000 Cap Jeopardizes Your Employer Drug Coverage The Inflation Reduction Act has generated many initiatives to cut drug costs for Medicare beneficiaries but may have created a dilemma. Will the drug coverage incorporated into the employer group health plan still be considered creditable? After a comprehensive cost-benefit analysis, you can make an informed decision. Basically, there are two choices. Read More |
| Industry News |
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| Walgreens Teams with Bilt Allowing Shoppers to Apply FSAs, HSAs to Purchases Consumers forfeit hundreds of dollars every year from their unused FSAs funds that can help employees pay for certain out-of-pocket health care costs. However, many people do not know how to tap into them. Bilt, a loyalty program, is partnering with Walgreens to ensure those funds are no longer wasted. Read More |
| Vanguard Offers Emergency Savings Account, Health Cost Estimator Two new features have been added to Vanguard’s recordkeeping platform in the last few months—the Vanguard Cash Plus Account to help participants save for emergencies, and a health cost estimator to help pre-retirees better understand the medical costs they can expect in retirement. Read More |
| Best Practices |
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| How Employer Contributions Work for HSAs Employers can make HSA contributions in several ways. One common method is a direct contribution, where the employer deposits a set amount into the employee’s HSA, either as a lump sum or in installments. Another method involves matching the employee’s own HSA contributions, similar to how employers might match contributions to a 401(k) plan. Read More |
| Support Your Employees’ Fertility Benefit Needs With an HSA or FSA Roughly 1 in 6 adults worldwide are affected by infertility. Did you know that a variety of fertility and infertility treatments are eligible for HSA and health FSA funds? Here’s how you can support your employees with these needs. Read More |
| HSAs & Retirement |
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| Harnessing the Power of HSAs for Retirement Wealth Accumulation The benefits of using an HSA as a retirement savings vehicle are vast. Considering all of the aspects, HSAs emerge as a strategic and dynamic tool if you’re looking to optimize your retirement planning. As the future of retirement savings evolves, the HSA stands out as a powerful way to build a financially robust and health-conscious retirement. Read More |
| Your Healthcare Could Cost $165,000 in Retirement. Here’s How to Prepare When planning for your old age, there are specific steps you can take to save for health costs. But to a large extent, the money for retirement and healthcare go hand in hand. As such, the important thing is saving as much as possible and making the most of tax-advantaged accounts and other benefits. Here are three accounts to pay attention to. Read More |
| Transamerica Reveals Greatest Retirement Dreams and Fears For middle-class Americans, the vision of an ideal retirement includes a blend of adventure, connection and personal fulfillment. However, this dream is often tempered by significant fears about financial security, health and the sustainability of essential programs like Social Security, according to a new report from Transamerica. Read More |
| Maximizing Your HSA |
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| This Triple Tax-Advantaged Retirement Account Is Getting a Big Boost for 2025 HSAs are loaded with tax breaks, and these tax benefits well outweigh the drawbacks, provided your health insurance plan is compatible. HSAs are getting a big boost for 2025, which means you have the potential to reap even more benefits from one of these plans. Here’s what you need to know. Read More |
| Consumer-Driven Health Care |
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| Consumers as a New Class of Payor The portion of healthcare spend covered directly by consumers has shot up in the last several years, reaching $471 billion in 2022. As such, consumers are effectively a new class of payor. A number of opportunities exist to build solutions for those consumers to fund, navigate, and manage their healthcare purchases. Read More |