Health savings account (HSA) holders are encouraged to save the money in their accounts for long-term health care expenses, but the less they use their accounts, the greater the risk for fraud and identity theft.
Frustration continues for working individuals 65 and older who are required to stop HSA contributions once enrolled in Medicare, but legislation is pending to fix that.
WEX Health President Jeff Young says he hopes “to see employers, providers, brokers and advisers dedicate October 15 to encouraging consumers or employees to ask as many questions as possible [about HSAs] ahead of open enrollment.”
An Alegeus mobile-first Smart HSA app is on course to deliver an intuitive, personalized, and self-guided account experience for health savings account (HSA) participants.
MassMutual cites data from Aite Group showing usage of HSAs is projected to outpace other financial accounts for health care, such as HRAs and FSAs.
Employers need to understand the basics of each in order to communicate to participants accurately, and they can use the differences to help employees view HSAs as long-term savings accounts, Sara Caddy, with Dimensional Fund Advisers told webinar attendees.
While the service is offered as a package, plan sponsors will be able to choose select solutions for their needs.
The enhancements are designed to offer a streamlined participant experience and resources to support smarter spending and saving decisions.
A 65-year old couple retiring in 2019 can expect to spend $285,000 in health care and medical expenses throughout retirement, Fidelity estimates, but it says it is possible to save for retirement health costs via health savings accounts.
HSA Bank recommends employers offer a guide about health plans, their costs and what they cover; a health plan comparison tool; and a tax-advantaged savings account to help employees become better health care consumers.
Health savings accounts (HSAs) are now being touted as a way for saving for health care expenses in retirement, but is this feasible? A recent report found employees spend 90% of their HSA assets on current medical expenses, leaving little to save/invest for the long term.
In Information Letter 2018-0033, the IRS offers some examples of the type of errors which may be corrected—expanding on previous guidance.
In addition, Devenir found HSA investment assets surpassed the $10 million mark in 2018.
Kelley Long, certified financial planner with Financial Finesse, shared information to help employers promote health savings accounts (HSAs) as a retirement savings tool for employees.
Voya health savings account (HSA) account holders with $2,000 or more in their HSA may choose to actively manage their account and select their investment options within their HSA.
Franklin Templeton is rolling out R6 shares for health savings accounts, while Principal has announced its first collaboration with an HSA provider.
A report from Cerulli Associates suggests that pairing HSA and DC plan communication and administration and modernizing HSA investment menus can help to position HSAs as retirement savings vehicles.
Optum says the enhancement has already shown results; accountholders who were targeted with new messages increased their balances, became eligible to invest, and chose to open investment accounts.
Half of Americans surveyed by HSA Bank are using savings accounts to save for health care expenses in retirement, and 47% plan to rely on their 401(k) plan.