HSA News for November 30, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Congress Set for Chaotic Year-End Sprint
Congress is set for a chaotic two-week sprint as lawmakers try to wrap up their work for the year. Both chambers are returning November 30 with just 10 working days before the House is set to leave town again and no plans to return until early January. Lawmakers have to tackle a lengthy to-do list, including must-pass legislation such as funding the government before December 12 to avoid a shutdown.
HSA Studies & Analysis
Playing the HSA Blame Game
It's not uncommon to hear negative things about Health Savings Accounts. But all too often, the criticism are off-base or flat-out wrong. Let's dissect a few of these arguments.
HSA Compliance Corner
Roll Wife's Balance into Husband's New Account? Nope! No "Our HSA!"
HSAs are personal trusts, with one owner only. It doesn't matter whether a couple is married and shares everything. Or even if they're both enrolled on the same medical plan. Only one of them owns each HSA in the family.
The HSA Shoebox Rule
Individuals can maximize the triple-tax advantaged status of their HSA funds by delaying reimbursement of medical expenses for multiple years. Individuals must keep sufficient records of such expenses, which is why the concept is frequently referred to as the “shoebox rule”—a reference to storing medical receipts in a shoebox for multiple years.
HSA Industry News
First Dollar Partners With RxSaver to Launch HSA Debit Card
First Dollar has partnered with RxSaver to introduce its first HSA debit card to its HSA members. The debit card has RxSaver's network information inscribed onto the back which makes it easy for consumers to save up to 85 percent on their prescriptions by only flashing their HSA card at checkout.
Industry Best Practices
2020 Open Enrollment: Employees Value Benefits, Still Struggle With Them
A new survey reveals that workers say they value their benefits, but still find them confusing and in some cases inadequate to deal with the stresses they are currently facing. The report recommends more targeted, personalized communication, and said digital tools result in higher satisfaction among employees when it comes to communicating about enrollment.
The HSA Market
HSAs for All: Unleashing the Potential of HSAs
There’s still some confusion as to what HSAs actually are and how they can be used. When you add to that the growing movement to “unchain” HSAs from their high-deductible health plan requirement, it’s even more important to understand what HSAs are now and what their potential is for the future.
Why Federal Employees Should Consider Joining an HDHP This Open Season
If you’ve never compared your existing FEHB plan with a high-deductible plan, now is a good time to explore your options to see if you can save some money in 2021 by switching plans. Let’s spend some time demystifying how HDHP plans operate, what you need to plan for, and review the reasons federal employees might consider joining one.
HSAs & Retirement
HSAs as Another Retirement Savings Account
We all want to be smart about planning for the future, but there may be one item you have left off your list. Part of creating a safe and secure future is planning for future medical expenses. As you create your holistic financial wellness plan, you may want to consider an HSA.
HSA vs. 401(k)
Saving for retirement is only half the battle -- you also have to pick the right accounts. A 401(k) is specifically designed for retirement savings, whereas an HSA is intended for medical savings, though it has appealing perks for retirement savers as well. Below, we'll look at some of the pros and cons of each type of account so you can decide which one is best for you.
3 Retirement Costs You Probably Aren't Planning for but Should Be
When it comes to making retirement plans, chances are good there are some important expenses you're overlooking. These costs can derail your carefully laid plans if you aren't prepared for them. The sad reality is that the aging process often leads to an increase in health problems. Some pre-retirees may be neglecting to plan for health care costs because they think Medicare will have them covered.
Maximizing Your HSA
What Is an HSA? How to Know if This Health Savings Plan Is Right for You
You may have heard about the many benefits an HSA can offer, such as pre-tax savings for qualified medical and health-related expenses. Still, some of the greatest benefits of an HSA are less well known, such as its use as a long-term savings or investing vehicle. It’s also easy to confuse an HSA with a flexible spending account, which can also offer some, but not all, of the same benefits.
How an HSA Can Help You Invest Now More Than Ever
In this video, Dan Caplinger discusses how you can make contributions to an HSA on top of what you put in as an employee via payroll deduction and some of the tax ramifications. As Dan sees it, an HSA can be one of the best tax breaks available -- but not everyone qualifies, so be sure you do what you need to do in order to take advantage of HSAs if you can.