HSA News for January 16, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
White House Extends COVID-19 Public Health Emergency Once Again
The Department of Health and Human Services officially renewed the ongoing public health emergency for the COVID-19 pandemic amid concerns over a more transmissible viral mutation and broad pandemic fatigue. The announcement by HHS Secretary Xavier Becerra marks the 12th renewal of the COVID-19 public health emergency, which was first declared by former HHS Secretary Alex Azar in January of 2020.
IRS Announces Tax Relief for Victims of Severe Winter Storms, Flooding, and Mudslides in California
Victims of severe winter storms, flooding, and mudslides in California beginning January 8, 2023, now have until May 15, 2023, to file various individual and business tax returns, pay any taxes due during this period, and make contributions to their Health Savings Accounts and IRAs, says the IRS. Only businesses and residents of specific counties named by the IRS qualify for tax relief.
HSA Compliance Corner
“Mr. HSA” Projects More Big Changes to HSA Amounts for 2024
With the January 12, 2023 release of the December inflation figures by the Bureau of Labor Statistics, the inflation-adjusted amounts for HSAs for 2024 are coming into view. I am projecting that the HSA amounts will see their second biggest increases in the history of the program. This is good news for HSA owners as the contribution limits will rise substantially again for 2024.
Health Savings Account Rules You Need to Know
A Health Savings Account is an account you can use to pay for medical expenses. One of its main benefits is that there is no tax on the funds, whether kept in the account or withdrawn to pay for qualified medical expenses. But not everyone qualifies for an HSA. Keep reading to learn more about HSA rules to help you determine if you qualify.
HSA Industry News
Award-Winning Thinking: Economist Shows HSAs Can Increase Retirement Savings, Lower Taxes
The TIAA Institute announced it has awarded Adam Leive the 27th annual Paul A. Samuelson Award for showcasing how HSAs can help consumers with both retirement savings and taxes. Leive, an assistant professor of public policy at the University of California, Berkeley, published research regarding whether consumers use their HSAs as savings vehicles and how they impact health spending.
HSAs & Retirement
How This Secret Savings Account Can Fund Retirement, Health Care
Okay, a Health Savings Account is not secret, although it’s rarely publicized. If your employer offers an HSA in tandem with a high deductible health plan, use it and fund it. It’s a great deal. The money you contribute is yours to keep. Employers even may help you fund it. At the very least, employ an HSA in your overall financial planning. It’s too good to pass up.
Maximizing Your HSA
Have You Missed the Deadline to Fund Your HSA in 2022? No, You Have Time!
Contributions to a Health Savings Account are tracked on the calendar year, regardless of when your medical plan renews or the date on which you enrolled. How late into 2023 can you make a contribution to reduce your 2022 taxable income? Because the traditional due-date for federal taxes - April 15 - falls on a Saturday this year, your deadline for completing your 2022 funding is the earlier of April 18 or the day that you file your personal return (without extensions).
New to a Health Savings Account? Here's What You Need to Do Now.
If you have a new HSA, or you opened one previously but never spent much time thinking or learning about how the account works, resolve to understand how to use your account this year, beginning today. It's a powerful financial ally. An investment of an hour or so this month, then five to 10 minutes per month the rest of the year is all it takes. Here are the steps that you need to take to enjoy the full benefits of your HSA.
I'm Maxing Out This Retirement Savings Plan in 2023 -- and You Should, Too
I'm fully aware that Social Security may be forced to start cutting benefits well before I reach retirement age. And that means I could end up getting a lot less money out of the program than I'd normally be entitled to. That's why I make a point to try to max out my retirement savings. And this year, I'm excited to max out an account I didn't always have access to: a Health Savings Account. You should consider it too.
Consumer-Driven Health Care
Surprise Medical Expenses Are Common. Here's How to Cope With Them
Healthcare is one of those perpetual expenses that can't be avoided. But medical bills commonly catch consumers off guard, to the point where a lot of people wind up in debt due to healthcare expenses they can't cover outright. And if you're certain that an unplanned healthcare bill would send you directly into debt, it's important that you try to set funds aside to cover medical costs specifically. In fact, there's one account it pays to turn to that could make saving for healthcare a lot easier -- a Health Savings Account.