HSA News for May 29, 2023
HSA News is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Biden, McCarthy Reach Debt-Ceiling Deal. Now Congress Must Approve.
An “agreement in principle” between President Joe Biden and House Speaker Kevin McCarthy would raise the nation's legal debt ceiling, but now Congress has only days to approve a package that includes spending cuts and would avert a potentially disastrous U.S. default.
The compromise announced late Saturday risks angering both Democratic and Republican lawmakers as they begin to unpack the concessions.
HSA Compliance Corner
Working Past 65? Remember, Medicare and HSAs Don’t Mix
It’s common for clients to work well past age 65. Although those clients become eligible for Medicare once they hit 65, there are potential complications that must be addressed to prevent unpleasant surprises. It’s important for clients to understand the rules before signing up for Medicare or claiming Social Security, so that they know the potential implications with respect to their tax-preferred HSAs in retirement.
HSA Best Practices
Devenir: HSA Investment Menu Design Trends
Devenir recently published a white paper sharing some of its views on HSA investment menu design. As a follow up to that piece, they compared past and present HSA investment menus and see if there are any noticeable trends taking place on an industry-wide level. This post takes a look at some of the things that stood out.
HSAs & Retirement
Tax and Retirement Benefits of Health Savings Accounts
Q: I’ve recently retired, and I think I can still use the money in my HSA to help with certain medical costs in retirement. Is that correct? A: Absolutely. Health Savings Accounts provide several benefits for both while you’re working, and for once you’re retired. Here’s what you need to know.
This Retirement Savings Account Is at Least 17% Better Than a 401(k), Says Expert: It’s ‘a Complete Cheat Code’
If used to its full potential, an HSA can be a more powerful retirement savings account than more conventional vehicles, such as 401(k)s and individual retirement accounts. Every dollar in an HSA is worth at least 17.65% more than a dollar in a 401(k), because you avoid paying income tax on your withdraw (savings of at least 10%) plus the 7.65% payroll tax employees owe.
3 Accounts Guaranteed to Help Minimize Your Taxes in Retirement
There are three accounts you may have access to that will be guaranteed to help minimize your taxes in retirement. They are a Roth IRA, a Roth 401(k), and an HSA. All three offer a path to some level of completely tax-free money in retirement, making them incredibly important accounts to know about and consider as part of your plan.
Maximizing Your HSA
HSA Limits Are Getting a Major Boost in 2024. Here's Why It Pays to Max Out.
Healthcare is an expense that seems to burden Americans at just about any age, which is why it's important to have money on hand to pay for it. That's where HSAs come in. HSAs don't require you to spend down your plan balance year after year. In 2024, HSA contribution limits are rising substantially. And you may want to push yourself to take advantage of that.
$10,000 HSA Contribution in 2024? How Does That Work?
The Internal Revenue Service recently released its inflation-adjusted figures for HSAs for 2024 . For the first time, it's possible for some account owners to deduct more than $10,000 from their taxable income for deposits into their HSAs. But who qualifies for this five-figure deduction? And who doesn't?
Consumer-Driven Health Care
5 Key Differences Between an HSA and an FSA
A single unexpected health care bill could amount to thousands of dollars, and that's why many prefer to save up for healthcare costs in advance. Two of the most popular ways to do this are using HSAs or FSAs. The two accounts have similar names, but they have some key differences that affect who can have them and how useful they are. Here are five you need to know about.
HSA and FSA Accounts Can Both Help You Cover Out-of-Pocket Medical Expenses, but Which One Should You Choose?
Both HSAs and FSAs are meant for making qualifying medical expenses that aren’t completely covered by insurance, however, they each have some important differences. Since you cannot contribute to both an HSA and FSA in the same year, you have to choose between them. Here's what you need to know, including how they work and how to pick the right account for you.
Never Pay Your Medical Bills Without Asking These 6 Questions
Americans pay the highest amount for everything from prescriptions to surgeries. The high cost of healthcare drives some Americans to avoid procedures or medications that they need, further exacerbating their medical problems. While you might not be able to change the system as a whole, there are some steps you can take and questions you can ask to help keep your medical costs under control.