HSA News for January 8, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Deadline Passes With Over 19,000 Comments on DOL Fiduciary Rule Proposal
The Department of Labor wrapped up a relatively quick comment period on its controversial fiduciary rule on January 2. Despite the department twice denying an extension of the comment period, supporters and opponents still managed to flood the DOL inbox with more than 19,000 comments. Perhaps emboldened by a federal appeals court decision tossing out the 2016 rule, opponents openly addressed future lawsuits against the current version in their comments.
ABA to DOL: Exclude HSAs from Coverage Under the Fiduciary Rule
In a comment letter sent to the Department of Labor on January 2, the American Bankers Association’s HSA Council urged the agency to exclude HSAs from proposed amendments to its investment advice regulation and related prohibited transaction exemptions. ABA said HSAs should be excluded because of the significant differences between IRAs and HSAs.
HSA Studies & Analysis
Study Identifies an Opportunity to Increase HSA Contributions
Employer contributions are a key factor in making a Health Savings Account program more attractive to employees. Companies have great flexibility in determining how they structure those deposits. They should consider adopting the matching program that they offer in their employer-sponsored retirement programs - for the same reason.
Market Trends
As Premiums Rise, a Majority of Americans Are Reviewing Insurance Policies to Find Savings
As personal insurance rates continue to increase for a myriad of reasons, around 70% of U.S. consumers are actively reviewing their insurance policies in an effort to find savings, according to a survey. When it comes to savings, almost half of Americans said they have or are considering taking on a higher deductible in order to lower their insurance premiums.
HSA Best Practices
45% of Workers Aren't Saving for Healthcare. These 2 Accounts Can Lower Your Taxes and Set You Up With Money for Medical Bills
Recent data finds that 45% of workers today are not saving specifically for healthcare expenses. If you're in that boat, it's time to change your ways. And there are two specific accounts you may want to look at as a home for your healthcare savings -- a health care FSA or an HSA -- both of which allow you to contribute money to pay for health care expenses on a pre-tax basis.
HSAs & Retirement
401(k) & HSA: The Perfect Retirement Power Couple?
Health Savings Accounts are increasingly being positioned as part of a holistic retirement savings approach rather than an account to fund current health care expenses, according to a recent survey. Recently, employers have been leveraging their 401(k) advisor to create a custom HSA investment lineup for them or one that might mirror their 401(k).
Turning 55 in 2024? Here Are 3 Financial Things You Should Know.
If you're turning 55 this year, you may be starting to count down toward retirement. And that means it's important to take advantage of the savings opportunities available to you. For example, If you're contributing funds to an HSA, age 55 is a big deal. That's because it's the earliest age at which you can make catch-up contributions in one of these accounts.
Maximizing Your HSA
Opening Your First HSA in 2024? 3 Things You Need to Know
If you've ever saved in a flexible spending account, you may be used to having to rush to spend down your plan balance every year or otherwise risk forfeiting funds. But thankfully, HSAs give you a lot more flexibility with your money. If you're opening your first HSA in 2024, you may not fully understand how your plan works. Here are a few key points to keep in mind.
Consumer-Driven Health Care
Money Matters: Budgeting for Medical Expenses Is a Healthy Financial Strategy
As most are aware, it can be quite expensive to seek medical care. Since health care is unavoidable for most, it’s wise to come up with a plan to help prepare for expected and even unexpected expenses. Taking initiative ahead of time can help you spend your money more wisely. Try to save some extra cash each month, choose an insurance that fits your needs, look into HSA and FSA accounts, and keep an eye on your health.
To Get a Bigger Tax Break on Healthcare, Make This One Move in 2024
If you have a high-deductible health insurance plan, you could be eligible for a special way to save money for healthcare costs -- a Health Savings Account. The flexibility and tax advantages of an HSA make it a great choice for anyone who has the right kind of health insurance situation to qualify.