HSA News for October 26, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
GOP Coronavirus Bill Blocked as Deal Remains Elusive
Senate Democrats blocked a scaled-down, GOP-only $500 billion coronavirus bill on October 21, as talks continue on a bipartisan deal between House Speaker Nancy Pelosi (D-CA) and the White House. Senators voted 51-44 to end debate on the Republican proposal, falling short of the 60 needed to overcome the procedural hurdle.
Finger-Pointing Picks Up in COVID-19 Relief Fight
The blame game is heating up as it becomes increasingly clear there will be no new COVID-19 relief deal before the elections. Even as party leaders inch closer to a deal on another huge package, both sides are girding for the near-certain prospect that it won't be enacted before Election Day.
HSA Compliance Corner
Your HSA Funding Windows Slams Shut at Age 65? Nope. Unless. . .
The intersection of HSAs and Medicare is one of the most misunderstood aspects of account compliance. There's nothing magic about turning 65 that affects an account owner's eligibility to continue to fund her account. But other decisions made at - or prior to - this age might indirectly close the door on future deposits.
The HSA Market
Industry Experts Discuss Benefit Trends for 2021
As 2021 approaches, financial advisers are preparing to discuss important changes with their clients. COVID-19 has reshaped the health care industry, including health care plans. As a result, more clients, especially those in high-deductible health plans HDHPs, are interested in HSAs for their flexibility in covering health care while providing retirement security.
Why Morningstar Says Advisors Need to Rethink Financial Planning Approach
Financial advisors now have the opportunity to delve into their clients’ health care costs. For those who can afford it, high deductible plans combined with health savings accounts hold advantages.
HSAs & Retirement
How Does Early Retirement Affect Your HSA Strategy?
Many Americans retire before the traditional age of 65 or before their full retirement age (age 66 years and two months for those turning age 65 this year) for Social Security. How does leaving the work force at that age affect your HSA?
Using an HSA as a Retirement Account
There are few vehicles as tax efficient as an HSA. I like to think of HSAs as a ROTH on steroids. With an HSA, you can deposit pre-tax dollars that grow tax-free and when withdrawn for qualified medical expenses are distributed tax-free.
The HSA as Another Retirement Plan Option
For employees going through the annual open enrollment period for their benefits with their employer, this can be a good time for financial advisers to help them get started with an HSA. They are a great vehicle for their intended purpose, but their characteristics can make them an even better retirement savings vehicle for your clients.
Why This Investment Account Is Key for Longevity Planning
Making the right decision today about your health plan is important. While a high deductible plan requires that the participant be able to meet the deductible, it also provides an opportunity to save by using an HSA. This key account can be a secret weapon for women in managing longevity issues in their retirement.
3 Things About Retirement Every Worker Needs to Know
Many seniors are caught off-guard by the cost of healthcare, so it may help (and scare) you to know that as per Fidelity's latest estimates, the typical 65-year-old couple retiring this year will spend $295,000 on it throughout retirement. That doesn't include long-term care, though, which most seniors end up needing. Contributing to an HSA during your career will help you better absorb the cost of healthcare later in life.
This Retirement Expense Could Cost You $172,000, and You're Probably Not Ready for It
When we think about the things we'll spend money on during retirement, a few common items may come to mind: housing, transportation, food, entertainment, and Medicare premiums. But there's one major expense a frightening number of seniors don't plan for -- one that could cause them untold financial hardships later in life. We're talking about long-term care, and it's more common than you might think.
Maximizing Your HSA
The Only Time It Makes Sense to Move Funds From an IRA to an HSA
A little-known rule presents a once-in-a-lifetime opportunity for clients with an HSA the ability to make a contribution directly from an IRA. Although this one-time offer isn’t worth the effort for most clients, there are a handful of situations where cash-strapped clients with high medical costs could really benefit from making the move and tapping tax- and penalty-free funds.
Consumer-Driven Health Care
Healthcare Consumerism Surges in Pandemic’s Financial Fallout
Healthcare consumerism is on the rise, as patients seek out price transparency and work to mitigate their own finances during the COVID-19 economic downturn, according to a new report. The researchers determined that the global pandemic may have played a role in this increase in healthcare consumerism.
Health-E Commerce Launches Petition to Support Personal Protective Equipment (PPE) Eligibility for Consumers With FSAs and HSAs
Health-E Commerce, the parent brand of HSAstore.com and FSAstore.com is encouraging HSA and FSA users to add their name to an online petition and contact their member of Congress to voice support for using HSA and FSA funds tax-free to pay for personal protective equipment (PPE).
Rethinking Annual Deductibles: The Case for Monthly Cost-Sharing Limits
A key contributor to underinsurance is growing enrollment in high-deductible health plans for those on the health insurance exchanges and in employer-sponsored health plans. Because annual deductibles do not reflect the economic realities of how people are paid or how they pay for other expenses, we believe that, to improve access to care, policy makers should consider alternatives to annual cost-sharing limits.