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A summary of the articles included in the June 2024 edition:
- Where the DOL’s Fiduciary Rule Intersects With HSAs
- Bridging HSA Eligibility Gaps
- IRS Announces 2025 HSA, HDHP Limits
- Health Savings Account Asset Growth Booming
- Suze Orman Says an HSA is One of the Best Retirement Accounts a Person Can Get — Here’s Why
- Devenir Launches HSA Research Hub
Where the DOL’s Fiduciary Rule Intersects With HSAs
Much has been said about the Department of Labor’s fiduciary rule and its implications for IRA rollovers – but there is another area that could make certain recommendations fiduciary in nature: Health Savings Accounts.
HSAs haven’t received much attention in context of the new rule, which is facing challenges by opponents in court and in Congress. However, the DOL was intentional in making sure that advice given around HSAs is fiduciary.
That will not affect advice anywhere near the scale as with IRA rollovers, but it could apply to advisors who focus on retirement plans and increasingly are giving a range of services that cover health and wealth.
Bridging HSA Eligibility Gaps
Question: If you were once eligible to fund a Health Savings Account, lose eligibility, and subsequently regained it, can you reimburse tax-free your old expenses with new contributions?
Answer: Because most Americans under age 65 receive their medical coverage from their employer through employer-sponsored plans, moving from job to job typically breaks continuity of coverage. In my family, for example, due to a corporate merger, loss of coverage and move to spouse’s plan, job change, and employer insurer change, we’ve been covered by five different plans offered by five distinct insurers during the last three years (and four during the las 18 months).
Fortunately, with each change, we’ve had access to an HSA-qualified plan and continued to fund either my or my wife’s Health Savings Account. Many couples, however, aren’t so lucky. Some individuals and families experience a gap in their eligibility to fund a Health Savings Account as they move from plan to plan in the natural course of their professional careers.
IRS Announces 2025 HSA, HDHP Limits
Employees will be able to sock away more money in their health savings accounts (HSAs) next year, thanks to rising inflation.
The annual limit on HSA contributions for self-only coverage in 2025 will be $4,300, a 3.6 percent increase from the $4,150 limit in 2024, the IRS announced May 9. For family coverage, the HSA contribution limit will jump to $8,550, up 3 percent from $8,300 in 2024.
The jump in the contribution limits is significantly less than the roughly 7 percent increase seen from 2023 to 2024.
Health Savings Account Asset Growth Booming
Supported by stock market tailwinds, Health Savings Account assets saw record growth in 2023, according to findings of the most recent HSA survey and research report from Devenir, a national leader in providing investment solutions for HSAs.
The report found that there was $123 billion saved in over 37 million HSAs at the end of 2023. That’s a year-over-year increase of 19% for assets and 5% for accounts. Further, the Health Savings Account market is projected to approach 44 million accounts by the end of 2026, holding $168 billion in assets.
Suze Orman Says an HSA is One of the Best Retirement Accounts a Person Can Get — Here’s Why
You’re probably quite familiar with 401(k)s and individual retirement accounts (IRAs), but have you ever considered a health savings account (HSA) for your retirement years?
Financial advisor and author Suze Orman says an HSA is “one of the best retirement accounts out there.” But you may be wondering what exactly a health savings account has to do with retirement.
“Can you imagine putting money in and getting a tax write-off for it and using it tax-free? There is not one other retirement account that offers that benefit,” Orman said during an episode of her podcast, Women & Money.
Devenir Launches HSA Research Hub
Introducing the HSA Research Hub powered by Devenir! This new resource offers the latest insights and trends in the Health Savings Account (HSA) industry. Explore in-depth reports, data analysis, and expert perspectives to stay informed and make data-driven decisions.