By William G. Stuart | Originally posted on LinkedIn for Health Savings Academy This column is an excerpt (Question 99) from a book to be published later this year to help guide account owners, employers, benefits managers, and administrators understand Health Savings Account compliance issues. The format consists of a common question, an explanation in easy-to-understand English (often with an appropriate example), and citation from government documents to support the answer. The book is designed to inform. It is not a legal document, and the contents should not be construed as legal advice ..read more

By William G. Stuart | Originally posted on LinkedIn for Health Savings Academy * Only a very small percentage of Medicare Part A enrollees are eligible to disenroll to continue funding a Health Savings Account. Chances are excellent that you're not among this handful. No Health Savings Account topic is more confusing than the intersection of these financial accounts and Medicare coverage. This observation was reinforced last week when an industry colleague asked me to weigh in on a compliance question. One of his company's account owners had talked to a Social Security representative and was ..read more

By John Manganaro | Originally posted on ThinkAdvisor Survey data published this week by Northwestern Mutual shows that Americans’ “magic number” for retirement has surged to an all-time high — rising much faster than the rate of inflation and swelling more than 50% since the onset of the pandemic. According to the poll, Americans on average think they need to save $1.46 million to retire comfortably, a 15% increase over the $1.27 million reported last year. That jump far outpaces today’s inflation rate, which hovers between 2% and 3%. The magic number has jumped 53% from the $951,000 tar ..read more

By William G. (Bill) Stuart | Originally posted on LinkedIn by Health Savings Academy This column is an excerpt (Question 52) from a book to be published later this year to help guide account owners, employers, benefits managers, and administrators understand Health Savings Account compliance issues. The format consists of a common question, an explanation in easy-to-understand English (often with an appropriate example), and citation from government documents to support the answer. The book is designed to inform. It is not a legal document, and the contents should not be construed as legal ad ..read more

By William G. Stuart | Originally posted on LinkedIn for Health Savings Academy Some expenses for general health may be qualified for tax-free reimbursement from a Health Savings Account. But a Letter of Medical Necessity isn't a guarantee that the product or service is qualified. Last week, the Internal Revenue Service took the unusual step of issuing a press release [IR-2024-65: IRS alert: Beware of companies misrepresenting nutrition, wellness and general health expenses as medical care for FSAs, HSAs, HRAs and MSAs (govdelivery.com)] to inform Health Savings Account owners, Health FSA, par ..read more

By National Council on Aging | Originally posted here Many people take advantage of Health Savings Accounts to put money aside for future medical costs. But there are special rules you need to know about these accounts when first joining Medicare. What is a Health Savings Account (HSA)?  An HSA itself is not a health insurance plan but an option with a High Deductible Health Plan (HDHP). Employer Group HDHPs are increasingly popular due to their relatively lower costs to employers.  An HSA is a valuable tool to save money to pay the higher upfront out-of-pocket costs and offers tax b ..read more

by William G. Stuart | Originally posted on LinkedIn - Health Savings Academy Yes, Health Savings Accounts are triple-tax-free. But you must complete some paperwork to receive the full benefit. Relax - the work isn't taxing. It's said that the only two certainties in life are death and taxes. (Yes, former NBA guard Otis Birdsong revised the list to include a third entry - 'my jump shot' - but that's generally not recognized as a third certainty.) The statement isn't literally true, as any educated Health Savings Account owner knows. Funds flowing into and out of this tax-perfect account are ne ..read more

by Paul Wynn | Originally posted on USN If you’re interested in learning about a triple-tax benefit plan, then look no further than health savings accounts, also referred to as HSAs for short. HSAs established by the Internal Revenue Service provide three distinct tax advantages for Medicare-eligible individuals: Your contributions reduce your taxable income. Any investment growth within the account is tax free. Withdrawals used to pay for qualified medical expenses are tax free. What Can You Use an HSA to Pay for Tax Free? Before you use your HSA, make sure the medical expense is cove ..read more

by John Russell | Originally posted on Indianapolis Business Journal Over the past two decades, HSAs have grown into a huge industry, surpassing $100 billion in assets in 2022, as more Americans have taken advantage of the plans. Increasingly, benefits brokers and personal-finance experts are advising people to consider using cash to pay for health care and investing the HSA funds for decades. Why? Because investing HSA funds for the long term can leverage so-called “triple-tax” benefits, which can stretch money even further. Continue Reading ..read more

By Brian Gilmore | Originally posted on Newfront Question: How can employers correct missed HSA contributions? Short Answer: Employers can make a deposit for a missed HSA contribution through the tax filing deadline (typically April 15) of the following year without the need to correct the employee’s Form W-2. After that date, employers have to consider the best approach based on all the facts and circumstances of the situation. Missed Employer HSA Contribution: Current Year Where an employer discovers that it missed funding an HSA contribution for an employee in the current year, the employer ..read more