HSA News for May 18, 2020
HSA news is compiled by Mr. HSA, Roy Ramthun.
News from Washington
House Passes Massive $3T Coronavirus Relief Package
On May 17, House Democrats approved a mammoth $3 trillion relief package designed to alleviate the health and economic fallout of the deadly coronavirus pandemic, seeking to add pressure on Senate Republicans to act on a new round of emergency aid. The was largely on party lines.
Senate GOP Crafting Wishlist for Next Coronavirus Package
Senate Republicans say that Speaker Nancy Pelosi’s (D-CA) new $3 trillion coronavirus relief package is dead on arrival in the upper chamber, but they are assembling ideas for a package that could pass this summer. Rank-and-file Senate Republicans acknowledge there is growing pressure to respond to the House Democrats.
Hopes Fade for Coronavirus Relief Deal Before June
Striking a bipartisan deal over a new coronavirus relief bill is becoming increasingly unlikely before June. as Senate Majority Leader Mitch McConnell (R-KY) and Speaker Nancy Pelosi (D-CA) are at odds over additional legislation. The stalemate almost certainly ensures the House, Senate and White House won’t get an agreement on, and pass, another rescue package before the Memorial Day recess.
IRS Allows More Election Changes, Modifies FSA Rules
Prompted by the COVID-19 pandemic, the IRS has issued more guidance addressing cafeteria plan election changes, FSAs and HSAs. The guidance attempts to clarify and address questions stemming from prior legislative and regulatory actions. The temporary relief applies to 2020 activity only.
HSA Compliance Corner
A Dangerous Intersection: HSAs and Health FSAs
Health FSAs and HSAs are both are governed by federal tax law. When you participate in a Health FSA, that plan automatically covers not only you, but also your spouse, tax dependents, and children to age 26. In most cases, coverage on your own or someone else's Health FSA doesn't affect your eligibility to enroll in any other coverage. But most cases isn't all cases, especially when an HSA is involved.
5 Ways the CARES Act Affects HSAs, FSAs and HRAs
The Coronavirus Aid, Relief and Economic Security Act, commonly known as the CARES Act, was passed by Congress in order to aid Americans with emergency relief in response to the economic impact caused by COVID-19. What is getting lost in the news cycle are the important changes that have been made to HSAs, FSAs, and HRAs. HSA participants, in particular, have important changes to consider.
The HSA Market
Gen Z Outpacing Other Age Groups in Saving
COVID-19’s effects on the market, employment and money will turn Millennial workers into great savers. Generation Z, experts say, is already there. The effects of COVID-19 will likely reinforce the idea that if Gen Zers are looking to live and make money on their own terms, they’ll need to have their finances, and savings, under control.
HSAs & Retirement
When It Comes to Having Enough Money for Medical Care, Retiree Confidence Is Down
Healthcare can be a worrisome expense for seniors, and a smaller percentage of retirees is confident in their ability to pay for it. If you're concerned about affording medical care when you're older, read up on the costs you might face; boost your general retirement savings; and, sock away money in an HSA.
34% of Retirees Are Spending More Than Expected
It's hard to anticipate what your expenses will look like in retirement until you actually get there. Such has been the case for 34% of retirees who say they're spending more than they thought they would, according to a recent survey. Not shockingly, 38% of today's retirees are spending more on healthcare and dental expenses than they figured they'd need to.
Maximizing Your HSA
HSAs Useless During an Economic Downturn? Not by a Long Shot!
An economic recession may not be the time for some people to contribute to financial accounts as a general practice. But HSAs are different. Very different. In times like these, an HSA can be a very important ally, particularly for those who are affected directly by the coronavirus pandemic.
HSAs: Saving for, and During, an Emergency
Before the COVID-19 pandemic, HSAs were gaining a lot of traction as a valuable tool in the retirement tool belt. However, this pandemic reminds us that saving for unexpected emergencies is an equally important goal. Moreover, for most people, these goals are not mutually exclusive. And, as we’ll discuss, HSAs can serve both needs effectively.
How to Make the Most of Your HSA
An HSA can make paying for medical costs a whole lot easier—you just have to know how to use it. Watch this video to learn more.