HSA News for December 11, 2023
HSA news is compiled by Mr. HSA, Roy Ramthun.
HSA Compliance Corner
How Much Can Family Members Contribute to HSAs in 2024?
You've probably set your pre-tax payroll deductions to fund your Health Savings Account in 2024. If not, don't worry - you can make prospective changes to your payroll deductions and personal contribution schedule at any time. But don't overlook certain situations in which some families can make multiple family contributions when covered by a single family medical plan. Read on to learn whether your family falls into one of those categories.
What Qualifies as an HSA Eligible Expense?
A wide variety of things could be considered a qualifying expense for HSA reimbursement. Some are obvious, like medical copays, dental cleanings, and prescriptions. Others are less obvious, like over-the-counter drugs or even sleep aids. But you can't pay health insurance premiums with HSA funds. The exception to this is that Medicare premiums are eligible for HSA reimbursement.
Should Supplements and Gym Fees Be Qualified Expenses?
There's sentiment once again to include nutritional supplements and fitness-club memberships as qualified expenses to reimburse tax-free from health care accounts like HSAs and health FSAs. Should these expenses qualify?
HSA Industry News
Mesirow Tapped by WEX to Serve as RIA
Mesirow Fiduciary Solutions announced that it is now providing registered investment advisor (RIA) services for WEX, the nation's fifth-largest HSA custodian. Mesirow will leverage its expertise to build an investment portfolio to help meet the unique needs of HSA account holders and provide tax-free savings for medical expenses both now and into retirement.
Market Trends
The Young Workforce Is Driving Consumerization of Health Care and the Demand for HSAs
Inflation is impacting the younger generation more than older generations. Younger generations are also seeking additional ways to save for the future other than just a 401(k) or Roth IRA. HSAs provide significant benefits specifically to the younger workforce, whether their goal is to increase their retirement savings or select from a broad range of medical providers.
HSA Best Practices
Educating Employees Is Key to Maximizing HSAs: A Q&A with UMB Bank's Brian Hutchin
With HSAs becoming increasingly popular as more companies offer high-deductible plans, it’s important for employers to provide up-to-date information on how you can pair the two and how new and existing employees can best use their accounts. This education should be continuous, going beyond the open enrollment period. Here's how HSAs are one of the best long-term savings options.
HSAs & Retirement
Worried That Healthcare Costs Will Wreck Your Retirement? Here's What to Do.
There's one specific expense category that tends to increase in retirement rather than decrease, and it's healthcare. In a recent survey, 44% of respondents said that healthcare costs were a major retirement concern of theirs. If you feel similarly, then there's one savings plan it pays to take advantage of -- a Health Savings Account.
Tips for Using a 'Medical IRA' That Offers Triple the Tax Savings
Healthcare is frighteningly expensive and seems to get more so every year, especially for older Americans. Enter the HSA, a tax-advantaged vehicle that can help many working Americans better plan for their medical and financial futures. It's a savings and investing account that Americans are becoming more aware of, but often still fail to make full use of, advisors say.
Maximizing Your HSA
HSA Contribution Limits for 2023 and 2024: Here’s How Much You Can Save
HSA contribution limits are increasing in 2024. If you’re 55 or older, your HSA annual contribution limits are higher because you’re allowed to make an extra catch-up contribution. In this article, we’ll cover the rules for HSAs, what types of health plans are HSA-compatible, as well as some factors to consider as you shop for health insurance.
The New 2024 Health Savings Accounts Limits Explained
The IRS sets total annual limits on the amounts that may be contributed to an HSA each year and the limits are increasing for 2024. The good news is that an HSA can be funded by employer and employee contributions. Employer contributions are excluded from the employee's income and will reduce the amount employees can contribute.
Here’s How a Health Savings Account Works. Spoiler: It Can Be a Stealth Retirement Fund
Dear Liz: For the first time, I signed up for a high-deductible insurance plan along with an HSA. However, I don’t quite understand a couple of key concepts. Can you help? Answer: Here's out HSAs work.