HSA News for May 26, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
IRS Announces 2021 HSA Contribution Limits
The Internal Revenue Service announced new, higher contribution limits for health savings accounts for 2021 on May 20. You’ll be allowed to contribute $3,600 for individual coverage for 2021, up from $3,550 for 2020, or $7,200 for family coverage, up from $7,100 for 2020.
HSA Compliance Corner
New Health FSA Regs Don’t Affect HSAs? Not True!
Recent IRS guidance provides more flexibility for Health FSA participants during the pandemic. HSAs already have this flexibility. But the Health FSA flexibility may harm HSA participants. FSA grace periods and carryovers can compromise your eligibility to open and fund an HSA, even retrospectively.
The HSA Market
What Passage of the CARES Act Means for FSA and HSA Clients
According to Aite Group, there are currently more than 60 million people in America who are enrolled in FSAs and HSAs. Here are some key points advisors can share to help clients better understand the value of their FSA or HSA and how they can use these accounts to save money on everyday health needs throughout the year, including protecting themselves from the spread of viruses like COVID-19.
HSAs and Retirement
Enrolled in Medicare…Now I Can’t Fund My HSA!
When I talked with my company’s HR department, they advised me to apply for Medicare Part A although I really did not need it. Now I find out that since my insurance is an HSA, signing up for Part A has disqualified me for any contribution to the HSA plan. Does having Part A really disqualify me from contributing to my HSA Plan? If so, how can I stop Medicare Part A and stop this HSA tax situation?
Could Your Retirement Plan Get a Boost From an HSA?
It is a fairly known concern that health care costs in retirement are a major expense. An HSA may be an option to help manage these costs. This is an account that can be used to pay current as well as future health costs.
This Expense Is Costing 40% of Retirees More Than They Expected
Forty percent of retirees say they're spending more on healthcare and dental expenses than they'd anticipated they would when they first retired, with 13% of those saying they're spending much more than they'd expected. You can never know in advance exactly how much you need, but it's better to be too pessimistic about your health. Here's what you should know about budgeting for these expenses.
Maximizing Your HSA
7 Ways to Maximize the Benefits of HSAs
HSAs are perhaps the most powerful savings vehicles, especially for retirement savings, because of their significant tax advantages. Although use of HSAs is increasing rapidly, there are misunderstandings about the accounts and many people don’t know how to take full advantage of their power.
Making a One-Time Rollover to Boost Your HSA Balance
You can make a once-per-lifetime rollover from an Individual Retirement Arrangement to a Health Savings Account. It's an ideal opportunity if you move funds from the right IRA for the right reasons. But be careful you don't "eat the seed."
Consumer-Driven Health Care
How to Save Money on Health Care
Consumers have many options to save money on health care and insurance. One way people can lower their healthcare costs is to open an HSA. By putting pre-tax money aside for qualified medical expenses, including deductibles, copayments, coinsurance and other expenses, this money can help people cover unexpected medical events and avoid higher bills down the line.