HSA News for December 9, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
HSA Studies & Analysis
Top 20 HSA Market Concentration – 2024 Midyear Update
Using data from its latest HSA Research Report, Devenir analyzed market concentration among the top 20 HSA providers (by assets), finding a 10% increase from the previous year. Market share among the top 5 largest HSA providers increased to 73% of total HSA assets, up from 70% at the 2023 midyear point.
Retirement Savings Have Increased for Bank of America Clients
Retirement and HSA balances have grown since last year for the 4 million or so employees with 401(k) accounts with Bank of America clients, signaling an improvement in their collective financial wellbeing. The average 401(k) account balance was $102,660 in September, up $22,635 from one year earlier, while the average HSA balance was $5,130, up $650, BofA reports.
Health Savings Accounts: A Path to Financial Savings and Better Health
With the rise of the gig economy, the potential for HSAs to benefit more Americans is greater than ever. Unlike full-time workers, the 59 million and growing American gig workers lack access to employer-sponsored health insurance. Why not allow these workers to use their HSAs to receive contributions from employers, themselves, the government, or private parties, to fund routine medical needs and even pay for premiums?
Compliance Corner
Changes to Health Savings Accounts in 2025
Whether you’re considering opening an HSA or have been enjoying the benefits for years, there are some upcoming changes to this account for 2025. Changes include an increase in how much you can contribute to your account for the year as well as what exactly qualifies for a high deductible health plan, which is required to contribute to an HSA.
HSA Comparability Rule Violations Are Drastic, But They Rarely Apply to Employers
When an employer contributes to employees’ HSAs, those contributions are governed by one of two sets of rules. Contributions made by employers that do not allow employees to make pre-tax payroll contributions through their Sec. 125 cafeteria plan are subject to comparability rules, meaning they must treat all employees comparably when funding their employees’ accounts. Here’s what that means.
Industry News
Inspira Financial Acquires First Dollar
Inspira Financial announced the acquisition of First Dollar, a technology innovator known for simplifying consumer-directed benefits. Inspira said the acquisition is a key investment in their vision to lead the industry in health consumerism by combining innovative technology with a health-focused mission.
New Partnership Established Between Synergent and Superior IRA & HSA
Synergent announced a new vendor partnership has been formally established with Superior IRA & HSA which offers an integrated platform that makes IRA and HSA administration, compliance, and reporting easier, allowing credit unions to deliver top-notch retirement and health savings services to their members.
Market Trends
Most Seniors Retire Before Age 65, Study Shows
There are many benefits to retiring later in life. But most Americans don't even make it to age 65 before they leave the workforce. A new study finds that 59% of retirees stopped working before turning 65, and the median age of retirement was 62. Although retiring at 62 is extremely costly, it appears to be the norm.
Nearly Half of Retirees Have No Formal Decumulation Strategy
While “decumulation” may be trending among retirement plan professionals, it's not on the radar of many retirees, according to a survey, half said they forgo a formal retirement withdrawal strategy, instead opting to take what they need as they go. Two areas in which retirees may need guidance are adjusting for inflation and planning for health care costs.
Best Practices
How I'm Talking to Clients About Maximizing Their HSA
I’m always excited to educate clients about how HSAs are powerful savings vehicles with unique “triple-tax-free” benefits. Our role includes helping clients maximize their contributions, account growth, and distribution plan with their HSA, and utilizing the account to save taxes and create long-term security. Here’s what I’m telling my clients.
HSAs & Retirement
How to Use Your HSA as a Retirement Booster in 2025
There are ways to shore up money for rising health care expenses while boosting your retirement savings. One option to consider is an HSA. That’s because once you turn age 65, you can withdraw money from an HSA for anything penalty-free. And you can use your HSA funds to cover Medicare premiums tax-free. Here’s a deeper look into HSAs.
7 Schwab Funds That Make Your HSA Into Another IRA
Charles Schwab offers some of the largest and most cost-efficient funds you can find—including numerous funds you should consider if you take advantage of the tax benefits of investing your HSA. Here are a handful of Schwab mutual funds that have been chosen for their suitability in tax-advantaged plans, making them perfect for holding within HSAs.
Maximizing Your HSA
Last-Minute 2024 and First-Minute 2025 Moves to Enhance Medical Equity in Your HSA
For many Americans, November and December are open-enrollment time. Many of those deadlines have passed. But there may be some important decisions still to be made and some critical knowledge to gain and apply late in 2024 and early in 2025. Here's a rundown of issues that Health Savings Account owners should consider.
The New 2025 Health Savings Accounts Limits Explained
There are limits to how much you can contribute to an HSA each year. The good news is that the contribution limits have increased again for 2025. You generally have until the tax filing deadline (April 15) to contribute to an HSA. However, your contributions may be limited if you are not enrolled in an HSA-eligible health insurance plan for the entire year.
What Happens to My HSA When I Change Jobs?
Have you recently changed employers? Or are you considering making a change? Fortunately, when you participate in a HSA through your employer, your HSA stays with you. There are plenty of myths about HSAs, but today let’s tackle what really happens to your HSA when you change employers.