HSA News for April 15, 2024
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
OMB Concludes Fiduciary Rule Review, DOL Release Expected Soon
The White House's Office of Management and Budget has completed its review of the Retirement Security Rule, and it is expected to be released by the Department of Labor by the end of the month. The news follows a letter sent by 55 House Democrats urging officials to expedite their review of the rule.
EBSA Head Lisa Gomez Says DOL Continues Honing Retirement Security Rule
The Department of Labor is continuing to refine the definition of what constitutes investment advice versus education and product descriptions for retirement savers, says EBSA head Lisa M. Gomez. One key area of refining the proposal is “the basic issue of what is an investment recommendation and when you cross the line between talking about investments and actually recommending something to someone,” Gomez said.
HSA Compliance Corner
Enrolled in Medicare? You Can't Back Out to Fund Your HSA.
No Health Savings Account topic is more confusing than the intersection of these financial accounts and Medicare coverage. Unfortunately, it's almost impossible to disenroll from Medicare Part A once you're enrolled. This door opens only if you pay a premium for Part A coverage. And unless you're one in a hundred Part A enrollees, you pay no premium.
Can You Pay Concierge Doctor Fees from an HSA or FSA?
Is it true that the annual fees charged by concierge doctors are an ineligible medical expense for reimbursement from an HSA or FSA? That is correct. Such “membership fees” are generally not considered qualified medical expenses, excepting certain rare circumstances.
Market Trends
HSAs and FSAs Will Fuel the Growth of Prepaid Cards
The largest driver of the commercial prepaid market in future years will likely be employee benefits like HSAs and FSAs, according to a new study. The incentives for employees and the organizations they work for are aligned with these programs and bolstered by legislative policy.
HSA Best Practices
4 Things Your Clients Need to Know About HSAs
Your clients can’t benefit from a solution they don’t know about. This is especially true for HSAs, which still face many misconceptions in the market. Here are four things your clients need to know about HSAs in order to use this benefit effectively in their total compensation strategy.
High-Deductible Health Plan Opportunities and Challenges
Plan sponsors should consider offering a high-deductible health plan, but only after weighing the pros and cons for their workforce, according to panelists speaking at a recent HSA conference. It is important that employers understand their employee populations. Using personas, or profiles that align with the characteristics of different categories of employees, is also an effective way to communicate the benefits of HSAs.
Evaluating HSA Providers
Retirement and health experts encourage the use of HSAs but also warn that not all HSA providers are the same when it comes to fee structures and investment options. For example, investment menu options in HSAs can be very rigid because they are determined by the vendors providing the HSAs.
HSAs & Retirement
HSAs Should Be Promoted as Way to Supplement Retirement Savings
While HSAs are valuable on the health and welfare side of our industry, they pack even more powerful potential when it comes to retirement planning. Unlike an IRA, the amounts distributed from an HSA are received tax-free as long as the individual has proof that the distribution was related to an earlier medical expense. That makes a dollar contributed to an HSA more valuable than a dollar contributed to an IRA.
20 Years After the HSA’s Debut, Don’t Let More Missed Opportunities Escape
Health Savings Accounts are without question America’s most valuable, tax-preferred employee benefit. No other savings vehicle comes close to what the HSA can do in terms of leveraging the power of tax-favored benefits. But there is even more value to ponder that is hidden beneath the surface. HSAs generate superior outcomes that fund needs across five different categories.
How to Save for Retirement After Age 50
It’s not unusual for workers to get a late start on retirement savings. For a variety of reasons, many don’t seriously begin feathering their nest egg until they’re 50 or older. Getting a late start on retirement savings and hoping for a successful outcome requires a firm commitment, focus and a candid assessment of needs versus wants. To successfully jump-start your retirement savings later in life, follow these guidelines.
Maximizing Your HSA
Your Dental Expense Eligibility for an HSA or FSA
Dental expenses can be a significant financial burden, especially when unexpected dental procedures arise. For those who have HSAs or health FSAs, there are opportunities to save money on these expenses. We answer a few common dental-related questions as it relates to your HSA or health FSA.