“In the hustle and bustle of switching jobs, your Health Savings Account consideration may take a back seat – particularly if you’re no longer eligible to contribute. But fear not – you never lose your balances. Nor are they tied to your employer. “ William G. (Bill) Stuart Director of Strategy and Compliance June 24, […]
“Each of the proposals outlined above would help hard-working Americans pay for their health-related care. Each would benefit hard-working lower-income Americans and other marginalized people nearly exclusively . . . All would reduce the financial barriers to care – particularly high-value care. All would empower people by giving them more control over their treatment decisions.” […]
“Surveys showing low balances are merely a snapshot. When you see a picture of a friend on social media posed on the dock before embarking on a cruise and then see her picture posted on the same dock when she returned, you don’t assume that she never left port, do you?” William G. (Bill) Stuart […]
“By establishing the account now, the child can reimburse tax-free any eligible expenses that she incurs for the rest of her life if she keeps a positive balance in the account. Let that sink in. . . Parents who realize this opportunity understand the value of setting up an account for their child. It could […]
“[T]here’s a huge misconception surrounding these children and Health Savings Accounts. Parents can’t reimburse their non-dependent adult children’s qualified expenses tax-free from a parent’s account, even if the child is enrolled in the parent’s coverage. Recall, though, that eligibility to fund an account is determined person-by-person. Children who meet the requirements . . . can […]
“[I]t’s the only account that you can establish and fund outside of work. . . You don’t even need to have earned income. You can fund your account with unemployment benefits, stimulus checks, savings, gambling winnings, proceeds from the sale of an asset, or borrowing.” William G. (Bill) Stuart Director of Strategy and Compliance April […]
“These figures – the additional $30 billion of deposits more than withdrawals and the average of more than $300 per account annually – represent medical equity. That term refers to tax-advantaged balances that owners can spend tax-free for eligible services and items in the future. This is a powerful asset that can fuel a more […]
“But these temporary rules do not solve the grace-period problem. They’re prospective election changes only. . . The plan year is over, so a participant can’t make a prospective change. The only viable solution is to end the grace period by November 30.” William G. (Bill) Stuart Director of Strategy and Compliance March 18, 2021 […]
“You’re required to complete and submit Form 8889 if you contribute to or distribute funds from your account, if you weren’t eligible to fund your account all 12 months of the calendar year 2020 (remember, Health Savings Account activity is tracked on the calendar year, regardless of your medical-plan renewal date), or if you inherited […]
“And what happens if you suffer the misfortune of living longer than the average person after turning age 65 . . . ? Why not preserve those Health Savings Account balances for qualified expenses and make withdrawals for non-qualified expenses from the account only after you exhaust your traditional IRA balances? Think of it as […]
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