HSA News for September 28, 2020
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Mnuchin Says He and Pelosi Have Agreed to Restart Coronavirus Stimulus Talks
Treasury Secretary Steven Mnuchin said that he and Speaker Nancy Pelosi (D-CA) have agreed to revive negotiations over a stalled follow-up coronavirus relief bill. Pelosi also said that she expected negotiations with the White House to resume shortly, telling reporters at the Capitol, "We'll be hopefully soon to the table with them."
House Passes Bill to Avert Government Shutdown
The House passed legislation on September 22 to avert a government shutdown through December 11, sending the bill to the Senate with just eight days left before current federal funding expires.
White House Puts Off Action on Surprise Medical Bills, Punts to Congress
The White House is putting off executive action to crack down on surprise medical bills, instead calling on Congress to act on the issue. After pushback from health care provider groups, GOP lawmakers, and debate within the administration, the White House is instead issuing a much more limited executive order simply calling on Congress to act on the issue.
Senate Set to Vote on Trump's Supreme Court Pick Before Election
Senate Republicans are preparing a speedy confirmation process for Amy Coney Barrett, President Trump's third Supreme Court pick, setting up a final vote before the election. The timeline will keep an explosive fight over the country's top court at the forefront of the final 38 days before November 3, where both control of Congress and the White House are up for grabs.
HSA Compliance Corner
HSA Limits and Minimums
For many people, HSAs offer a tax-friendly way to pay medical bills. There are, however, a few HSA limitations and requirements that are adjusted for inflation each year. They apply to the amount you can contribute to an HSA for the year, the minimum deductible for your health insurance plan, and your annual out-of-pocket expenses. If you or your health plan are not in compliance with the restrictions in place for any particular year, then you can say goodbye to the HSA tax savings for that year.
Proposed Federal Regs Could End HSA-Direct Primary Care Combinations
Here’s where the proposed IRS regulations create a big problem: They define direct primary care not as a service, but as a form of insurance — one that doesn’t satisfy the criteria as a high-deductible plan necessary to qualify for an HSA. Under the proposed rules, regulators view DPC as an insurance plan between doctor and patient to provide various services before the high deductible has been met.
HSA Industry News
WEX Announces New Virtual Event for Second Annual HSA Day
WEX announced it will host its second annual National HSA Awareness Day event. The initiative, which will take place on October 15, brings the public and the healthcare benefits industry together to discuss the power of HSAs and their ability to impact some of the most prevalent issues Americans face today. WEX has partnered with Jean Chatzky and Jason Tartick, and they will be joined by Lissette Calveiro.
HSAs & Retirement
Healthcare Costs Are Seniors' Biggest Financial Concern for Retirement, but Few Are Planning for Them
The question of whether or not they'll be able to pay for their healthcare and long-term care is the most common money-related worry among retirees, according to a 2020 Edward Jones survey. Yet only 22% said they had actually budgeted for their healthcare and long-term care costs, and fully 68% of workers soon to retire said they had no idea how much they ought to be setting aside for those expenses.
401(k) Savers Want to Know: How Much Do I Need to Save for Retirement?
Pre-retirees have questions about how much money they will need to save for retirement and how long they will need to make those dollars last, according to a Charles Schwab survey. Three-quarters of respondents were offered an HSA at work, and about half have taken advantage of that option.
However, only 41 percent are using their HSA to save for health care costs in retirement.
Employees Who Overpay for Health Insurance Tend to Under-Save for Retirement: TIAA
Employers have an opportunity to help employees avoid making common mistakes in health insurance and retirement savings choices, thereby improving employee well-being and maximizing their long-term financial stability, according to a new study by the TIAA Institute.
This Lesser-Known Retirement Savings Tool Is Loaded with Tax Benefits
No matter your age or income level, your goal should be to pay the IRS as little tax as possible. And the choices you make with regard to retirement savings could have a huge impact in that regard. In fact, many workers overlook one important long-term savings tool that's actually loaded with tax benefits. HSAs are unique in that unlike other retirement savings plans, they offer three distinct tax benefits.
Maximizing Your HSA
To help with rising health care costs, the government made HSAs available as of 2003. HSAs can be an incredible tool to save money on taxes while saving for medical expenses that you’d probably have to pay for anyway. For those that are familiar with other tax advantaged accounts, you know how rare it is to escape taxes completely.
This Tax-Advantaged Account Is Changing in 2021. Here's What You Need to Know
The fact that HSA funds never expire make them a great savings tool not just for the near term, but also for retirement. But the rules surrounding HSAs can change from year to year, so here's what you need to know going into 2021.
How to Use HSAs to Avoid Taxes and Take Charge of Your Healthcare
The HSA is an incredible tool to take greater control over your healthcare. It is the most tax-efficient investment account on the planet. So, if you’re eligible for it and not at least considering how to take advantage of it, you’re missing out. In this week’s podcast, I deep dive on HSAs with Roy Ramthun. I thought I already knew a lot about HSAs, but I still learned new things from Roy.
Health FSAs and HSAs Are Two Sides of the Same Coin? Not Exactly!
HSAs and Health FSAs are often thought of as two different solutions to the same problem. They do share many similarities, but they're very different in ways that are important to understand if you want to stretch today's and tomorrow's income to buy more of the things that you want and need. Here's a comparison of key features of both plans.
Traditional or Roth? HSA Owners Don't Face This Taxing Financial Dilemma
Is a farmer better off if government taxes the seed (contributions) or the yield (distributions)? The same question plagues retirement savers who debate the merits of a traditional IRA or Roth IRA or 401(k) (or similar) plans. But HSA owners enjoy the best of both worlds.
Consumer-Driven Health Care
Open Enrollment Is Coming Up — Here’s What to Watch Out for
One way to help with health-care costs is by looking for ways to use tax-advantaged accounts for medical expenses — specifically, HSAs or FSAs. In both cases, you use pretax money to cover out-of-pocket expenses, including doctor visits and prescription drugs.