HSA News for November 14, 2022
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Democrats Will Keep Control of Senate, Bucking Historical Trend
Democrats are projected to hold onto their narrow Senate majority after Sen. Catherine Cortez Masto eked out a win in Nevada Saturday night, beating back a furious challenge from Republicans who sought to seize on voters’ growing economic and political angst in an effort to upend unified Democratic control of Washington.
Where the Battle for House Control Stands
As of early Saturday morning, Republicans have won 211 seats in the U.S. House of Representatives while Democrats have won 205. Nineteen House races remain outstanding. Of those, Republicans lead in 10 of them and Democrats are ahead in nine of them. Republicans only need to win seven outstanding seats to get control of the House.
HSA Compliance Corner
Subscriber's Not HSA-Eligible. Can a Spouse Fund an Account?
Eligibility to open and fund a Health Savings Account is determined person-by-person. Each family member covered on an HSA-qualified plan may be HSA-eligible, depending on whether he or she passes the three-part eligibility test. So do not automatically turn away from HSA-qualified coverage when your spouse is enrolling in employer-sponsored coverage that isn't HSA-eligible.
Can I Use My HSA for My Spouse?
If you’re married, you might be wondering if you can use your HSA funds to pay expenses for your spouse. You can use money from your HSA to pay for your spouse’s medical expenses as long as those expenses fit into the IRS rules. The IRS allows you to use your HSA to pay for eligible expenses for your spouse, children or anyone who is listed as a dependent on your tax return.
HSA Best Practices
HSAs: An Important Tool to Combat Economic Uncertainty
As uncertainty of the macroeconomic climate continues, budgets are tightening for both employers and employees. Offering a Health Savings Account can benefit both employers and employees. For employees, HSAs allow them to build savings through its triple-tax advantages, as well as access greater choice when it comes to health insurance coverage. For employers, HSAs contribute to FICA savings, an important, and often misunderstood, savings modality.
A Few Simple Tricks Turn Humble HSAs into Wealth Builders
The Health Savings Account industry offers some significant financial planning opportunities for advisors and their clients, as only about a third of industry assets have been invested. The trick to using an HSA for wealth building is to fund the account to the maximum possible, invest for growth, use other funds to pay for medical costs, and then use a look-back allowance to spend down those HSA dollars at a much later date after they’ve generated additional wealth.
The HSA Market
HSAs at the Midpoint of 2022: 5 Things We’ve Learned
HSAs are a growing part of many companies’ benefits programs. They offer financial benefits to both employers and employees. And judging from the growth of accounts, assets and investments, they’re growing in popularity. Employers can implement strategies and tools to help workers understand and maximize the financial benefits of these accounts.
Americans Need Congress to Act to Help Them Manage Medical Expenses
With the prospect of divided government, neither party will have a mandate to make major changes in healthcare policy. Regardless of who controls each chamber of Congress, members should focus on helping Americans manage their out-of-pocket healthcare expenses. More and more Americans are struggling to pay high out-of-pocket medical costs. HSAs can be an important part of the solution.
HSAs & Retirement
What Is a Health Savings Account? And, Why It’s a Great Retirement Savings Option
A Health Savings Account can be a savvy way to save money by reducing your overall medical spending. It can also have compelling retirement savings benefits. Money can be deferred into an HSA account on a pre-tax basis just like a traditional 401(k) or IRA contribution. When money is withdrawn to cover qualified medical and dental expenses, withdrawals are tax-free.
Top 10 HSA Risks (401ks and HSAs, Better Together, Part Three)
The first 20 years of HSA experience include an extensive list of programs that underperformed. Here is Jack Towarnicky's Top 10 list of HSA risks, the issues and usage that he believes have impeded a full embrace of HSAs. Whether or not you offer HSA-qualified coverage today, consider these risks.
Saving for Retirement in an HSA? Prepare for These 2 Big 2023 Changes
Health Savings Accounts have gained a lot of attention for pulling double duty as a medical savings account and a retirement account. People who use it for the latter purpose find it similar to a traditional IRA, with a few bonus perks. Like traditional IRAs, HSAs are getting a little shake-up next year thanks to government changes to some of its key rules. Here are two you need to be aware of if you're already saving in an HSA or are thinking of opening one.
Maximizing Your HSA
Get Triple Tax Benefits With a Health Savings Account — and Avoid My $125,000 Mistake
My biggest money mistake was not contributing to and investing in a Health Savings Account three years earlier. This haunts me every fall during open enrollment season, which many people are now in the midst of. I’ve calculated that this mistake will cost me $125,000 in tax-free investment growth when I am 65. Here's how you can avoid making the same mistake.
Maximizing Health Savings Accounts Tax Benefits With Adult Children Under Age 26
The ACA allows children to remain on their parents’ health insurance plan until they reach age 26. This creates a potentially lucrative planning opportunity for young adults that cannot be claimed as tax dependents but can be covered by a parent’s HSA-qualified plan, giving them the opportunity to contribute to their own HSA up to the full family maximum contribution limit of $7,300 in 2022.
Consumer-Driven Health Care
Here Are 4 Ways to Take Advantage of Your Health-care Expenses Before the End of the Year
Health-care expenses can often be unpredictable and unwelcome. However, depending on your situation, there may be strategies you can employ that make those outlays a bit less financially painful. Because some of them involve taxes, experts say they shouldn’t be viewed in a vacuum. Here are four things that may ease some of the sting of your 2022 medical costs.