HSA News for March 15, 2021
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
House Approves $1.9T COVID-19 Relief in Partisan Vote
The House approved President Biden's sweeping $1.9 trillion COVID-19 relief package on March 10 in a starkly partisan 220-211 vote, sending the legislation to the White House and clinching Democrats' first big legislative victory in the Biden era.
Biden Signs $1.9 Trillion Relief Bill Into Law
President Biden signed his $1.9 trillion coronavirus rescue package into law on March 11, marking a significant legislative accomplishment for the new president as he looks to shepherd the country through the pandemic. The bill signing was originally planned for Friday afternoon, but was moved up a day after the bill arrived at the White House following the House vote on Wednesday.
Momentum Builds for Delaying Tax Deadline
Leaders of the House Ways and Means Committee and accounting groups are calling for extending the tax deadline to give the IRS, taxpayers and tax professionals an extra three months, noting that the COVID-19 pandemic is continuing to impose a “titanic strain” on the agency as well as taxpayers.
Millions More Smokers and Ex-Smokers Should Receive Free Annual Screenings for Lung Cancer, a Federal Task Force Says
The U.S. Preventive Services Task Force said people with a long history of smoking should begin getting annual low-dose CT scans at age 50, five years earlier than the group recommended in 2013. The group also broadened the definition of people it considers at high risk for the disease. Under the Affordable Care Act, private insurers will soon have to cover these services without patient cost-sharing.
HSA Studies & Analysis
HSA Deposit Rates – Devenir's Early 2021 Update
Over the past few years, HSAs have experienced more variation in their deposit rates than regular savings accounts and the average deposit rates at the top 20 providers remain lower compared to the broader market. The average deposit rate, for an account holder with $1,000 in their HSA has dropped 10 basis points since 2019.
Devenir's Credit Union HSA Update: 12/31/2020
As of 12/31/20, there were 863 credit unions holding total HSA assets of $1.97 billion, up 12.2% year-over-year. There were 863 credit unions holding HSA assets as of 12/31/20. Devenir estimates the average HSA balance at a credit union is $2,835 as of 12/31/20, up from $2,513 at the end of 2019.
HSA Compliance Corner
Employer HSA Contributions Must Be "Comparable?" Rarely (Which Is Good)
All employer HSA contributions are governed by federal tax code rules to ensure that similarly situated employees are treated fairly and consistently. That's the right concept. But the term "comparable" has a very specific meaning for Health Savings Accounts.
Louisiana Added to List of Texas Winter Storm Victims
Louisiana residents have been added to the list of victims of the February 2021 winter storms, joining Texas and Oklahoma residents, thanks to a March 10 announcement by the IRS. Louisianans will also have until June 15, 2021 to file their tax returns and make their HSA contributions for 2020.
The HSA Market
Roughly 5% of HSA Owners Invest Their Balances. Is 5% Good or Bad?
The percentage of Health Savings Account owners who invest their balances is about 5%, according to industry studies. Is that number too low, too high, or just right? Regardless of what it is, 100% of HSA owners benefit from the tax savings of their account.
Tweaking Employee Benefits Offerings? Consider These Insights
One of the key findings of the latest HSA Bank Health & Wealth Index is that high-deductible health plan consumers are the most engaged for the fourth year in a row. Consumers with HDHPs have more incentive to plan for future medical expenses with tax-advantaged accounts. Higher engagement prepares them to be ready for medical expenses, now and in retirement.
HSAs & Retirement
HSAs Can Help Your Employees Long After They Leave Your Company
Employees need to understand that most of the costs of health care in retirement can be covered by a Health Savings Account on a tax-free basis. Employees need education and decision-support tools to help them connect the amount they need to save with the cost of health care in retirement.
No 401(k) Match? 4 Alternate Ways to Save for Retirement
An HSA is not just for your current-year medical expenses. It's an effective place to save for retirement, too. The power of the HSA lies in its triple tax benefit. Your contributions are tax-free, your investment growth is tax-deferred, and your distributions for eligible medical expenses are also tax-free.
Maximizing Your HSA
HSA Tax Filing Guide for the 2021 Tax Season
If you are an HSA owner and aren’t sure how to file taxes on it, we’ve got you covered. Since HSAs have so many tax advantages, the IRS requires specific reporting for these accounts. We’ve put together this guide to clarify how HSAs may be taxed and what forms may be important to filing your 2020 tax return.
Consumer-Driven Health Care
There Is a Difference Between FSA and HSA
What is the difference between an HSA and a flex-spending account (FSA), and which is better? Both of these options are useful ways to pay for medical expenses with benefits and limitations with pre-tax dollars. These two accounts are very different in a couple of basic ways.