Blog
Accelerating Current HSA Trends Will Benefit Owners
“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.. Read more
Don’t Let New FSA Flexibility Disqualify New HSA Owners
“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.. Read more
Don’t Forget to Complete Form 8889 if You Have HSA Activity
“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.. Read more
Don’t Sacrifice HSA Tax Benefits in Retirement
“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.. Read more
Mind the Gap When You Can’t Fund a Health Savings Account
“That’s right – she can use future contributions to reimburse prior eligible expenses that she incurred as far back as when she established her Health Savings Account.” William G. (Bill) Stuart Director of Strategy and Compliance February 4, 2021 Not everyone who opens a Health Savings Account is continuously eligible to fund the account until.. Read more
Don’t Let New FSA Flexibility Prevent Your HSA Funding
“But this new flexibility can’t erase every potential disqualifying event. If you had a 2020 plan-year Health FSA with a newly extended grace period through the end of 2021, you can’t disenroll from the grace period. The 2020 plan year is over.” William G. (Bill) Stuart Director of Strategy and Compliance January 21, 2021 A.. Read more
The Year in Review – and What a Busy Year It Has Been!
“But retaining the right to continuation of coverage and paying premiums are two different things. If that person ends up in the hospital in February, she’ll have to pay her premiums retroactively to last March to receive coverage.” William G. (Bill) Stuart Director of Strategy and Compliance December 17, 2020 Mark Twain said it best:.. Read more
The Pandemic’s Effect on Nondiscrimination Testing
“Pandemic layoffs have disproportionately affected lower-income wage earners. . . Those higher-income employees’ elections now constitute a much larger percentage of the total program, which could flip the plan from compliance to noncompliance.” William G. (Bill) Stuart Director of Strategy and Compliance December 3, 2020 2020 is the year that has turned many people’s lives.. Read more
Will the New President and Congress Find Common Ground on Healthcare?
“Section 1332 of the ACA gives the Secretary of Health and Human Services broad power to approve state requests to innovate in offering coverage to their populations if the innovations expand coverage and don’t increase costs. The Trump Administration has approved a number of these requests. The Biden Administration is more likely to restrict innovation.. Read more
Accessorizing Your Health Savings Account Program
“A growing number of Health Savings Account owners are building balances to fund qualified expenses in retirement, including Medicare cost-sharing, Medicare premiums, and services (like dental and vision) not covered by Medicare. If they fund a Limited-Purpose Health FSA, they can enjoy the same tax benefits as a withdrawal from a Health Savings Account as.. Read more
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