However, Morningstar found fees remain elevated and transparency remains poor.
Only 4% of HSA owners invested their money, and when distributions were taken, investors took larger distributions than non-investors, EBRI found.
The solution will allow participants to more efficiently track their 401(k), 457 and 403(b) plans along with their HSA, while offering access to education and investment selection.
Investments in HSAs are solving for different outcomes than DC plans, so plan sponsors should take into account different considerations for investment selection.
Once participants understand health savings accounts (HSAs), plan sponsors can encourage them to invest their money and think about saving for future health care costs.
Even financially adept employees have trouble deciding where to save and how to spend.
This year, Congress is actively taking up legislation that would expand the use and benefits of health savings accounts (HSAs).
Consumers that are already enrolled in HSAs are more fluent, more engaged, and make savvier health and financial decisions than the general public, Alegeus finds.
The marketplace connects account holders to cost-effective and convenient qualified medical expense products and services.
A new interactive interface allows employees to think about retirement and health savings together and visualize the best way to allocate limited assets.
The new plan sponsor site calls for employers to “commit, collaborate, and communicate to drive engagement and adoption.”
For those who need more knowledge about health savings account (HSA) rules and benefits, a Congressional Research Service report can help.
Those who have HSA assets invested have a $16,007 average total balance, more than eight times larger than a non-investment holder’s average account balance, Devenir finds.
Bank of America Merrill Lynch’s 2018 Workplace Benefits Report also finds men and women show different levels of financial stress.
Legislation has been passed that would increase HSA contribution limits, but prior data shows few employees actually contribute the maximum.
If plan sponsors have suggestions and or would like to express support for health savings accounts, now is a good time to let members of Congress know, or to work through employer advocacy groups in Washington.