HSA News for December 18, 2023
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
DOL’s Proposed Fiduciary Rule Changes See Mixed Response
The Department of Labor hosted the first of two days of public comment on its proposed fiduciary rule on December 12. Many commenters argued that the proposal is essentially the same as a 2016 rule finalized by the DOL which was invalidated by a federal court. Some called for a full withdrawal of the proposal. Others called for more time to consider and discuss the rule, which they say are moving too quickly, especially during the holiday season.
IRS Issues Standard Mileage Rates for 2024
The Internal Revenue Service issued the 2024 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning January 1, 2024, the standard mileage rates will be 67 cents per mile driven for business use and 21 cents per mile driven for medical purposes.
HSA Studies & Analysis
As HSAs Reach 20 Years, the Focus on Investing Ramps Up
The HSA celebrates its 20th anniversary in 2024, and researchers and consultants say there is room for improvement amid the slow, steady growth of assets being invested in these accounts. As participants have more exposure to HSAs and gain more familiarity, familiarity breeds content for investing, according to research by the Employee Benefit Research Institute.
HSA Compliance Corner
Take Steps Now (!) If Your FSA Has a Grace Period or Carryover
If you participate in a general Health FSA this year and want to open and fund an HSA in 2024, be sure that you understand how a Health FSA grace period or carryover will affect your HSA eligibility. You have the power to eliminate any negative consequences of either Health FSA plan so you don't lock yourself out of the benefits of an HSA for anywhere from three to 12 months.
2024 Benefit Plan Limits & Thresholds Chart
Here are the limits and thresholds for 2024 for employer-based benefit plans in one handy, downloadable and printable chart. The chart includes 401(k)s, defined benefit plans, HSAs and HDHPs, health FSAs, dependent care FSAs, EBHRAs, QSEHRAs, commuter transit and parking, adoption assistance, and earning subject to Social Security payroll tax.
HSA Industry News
DataPath and Health-E Commerce Join Forces to Enhance FSA and HSA User Experience with Frictionless Technology Solutions
DataPath, Inc. announced a new partnership with Health-E Commerce the parent brand of the FSA Store and HSA Store. The partnership aims to offer benefit participants easy access to online shopping, account balance information, and direct payment options for their tax-free healthcare accounts, along with a simple and secure shopping convenience.
Market Trends
The Latest HSA Trend: Automatic Enrollments
HSAs are a growing workplace trend, and now the latest momentum for these savings vehicles comes in the form of employers automatically enrolling eligible employees into the account. Nearly half of organizations report they automatically enroll eligible employees in an HSA, according to a recent survey. That's up by more than 30 percent in just two years.
HSA Best Practices
Here's Why You Should Fund an HSA Before a Traditional IRA or 401(k)
If you earn an average wage, you may have to set priorities when it comes to funding tax-advantaged accounts for retirement. You may be inclined to first try to max out a traditional IRA or 401(k) plan before funding an HSA since that money can be used for any purpose in retirement. But here's why you may want to do the opposite.
Time to Put Your 2024 Health Savings Account Ducks in a Row
HSA contributions are tracked on a calendar year basis. It's important to know how much flexibility you have in setting and changing your 2024 funding levels. You can maximize your financial opportunity by spending a little time to determine how you want your HSA to look at the end of 2024. With a road map in place, you'll find it easy to navigate the route and realize quickly whether you've gone off course. Here are some important pieces of the plan.
HSAs & Retirement
Preserving HSA Eligibility And Maximizing Contributions After Age 65
While it's possible to contribute to an HSA after age 65, the specific rules around HSAs and Medicare introduce an additional layer of planning that's needed once an individual crosses the age-65 threshold. But the extra planning can ultimately be worthwhile on account of the additional tax-free savings for those who can navigate the challenges of doing so.
This Is My Favorite Account in Which to Save for Retirement -- and It's Not What You'd Expect
There are a number of different accounts I'm using for my retirement savings. But of all the different accounts I'm using to save for retirement, there's one that I happen to like more than any other -- a Health Savings Account. And there are three big reasons why.
3 Retirement Moves Everyone Should Make in the New Year
The start of a new year is a good time to focus on financial matters. And it pays to carve out some time at the beginning of 2024 to tackle a few key retirement moves. Here are a few specific tasks worth tackling in January: (1) increase your retirement savings rate; (2) check your retirement plan investments; (3) maximize contributions to an HSA.
Gen Xers Still Falling Short of Retirement Savings Expectations
Americans in Generation X are facing the largest retirement savings gap of all current generations, and many say they have not yet done any retirement planning, according to a new research study. The resulting savings gap of $451,170 topped the expected shortfall facing Millennials and Baby Boomers.
Maximizing Your HSA
Here's How to Make the Most of Your HSA in 2024
The best way to maximize your HSA in the new year is to contribute the maximum amount you're allowed and then leave that money alone. HSA savings and investments grow tax-free, so if you leave your balance untouched, you can amass a lot of money to spend on healthcare expenses in retirement. Then you can withdraw the funds tax-free to reimburse eligible expenses.
Have Remaining HSA Funds From 2023? Here's What to Do With Them
If you contributed money to your HSA this year, have unspent funds as of mid-December and you don't have any upcoming medical expenses to spend them on, what should you do? The good news is that there's no pressure to deplete that balance by the end of the year. Your best bet is to actually do nothing and keep that money invested.
Consumer-Driven Health Care
Your Savings Account Needs at Least This Much Money for Medical Bills -- Even if You Have Health Insurance
Medical bills have the potential to creep up on you at any time. And if you don't have money saved for them, they could quickly become a source of stress -- and debt. That's why you should try to save as much for healthcare bills as possible. At minimum, try to save enough to cover your annual insurance deductible. Saving the money in an HSA will reduce your taxes too.
Get to Know At-home HSA and FSA Eligible Expenses for the Elderly
As we age, the importance of maintaining safe mobility within our homes becomes critical. It is crucial to understand how you can save money on some common at-home expenses with HSAs and FSAs. From home modifications to adaptive equipment, here's how to create an environment that not only nurtures well-being but also empowers independence while saving money.
Need to Spend Those Pre-tax Health Dollars? Food and Exercise May Qualify.
HSAs and FSAs allow you to set aside money on a pretax basis to pay for “qualified medical expenses,” including medical, dental, prescription and vision bills. But many people don’t realize they may be eligible to spend the funds on a range of other options, including certain meal kits, gym memberships, protein powders, supplements, fitness trackers and even saunas.