Retirement Plan Service Representative
DeMars Pension Consulting Services, Inc. (Overland Park KS / MO)
401k & Defined Contribution Plan Consultant
Planned Retirement Consultant & Administrators, LLC (Remote / Ridgewood NJ)
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"If the entity administering the HSA is not a local financial institution, then the governing documents for the HSA, but not those of the HDHP, would need to be filed with Hacienda to obtain an administrative determination confirming that, both in its terms and operation, the HSA meets the requirements of PRIRC Section 1081.04.... [The] local limits are comparable to the U.S. 2012 limits. Since the limits are established by PRIRC Section 1081.04, rather than through Hacienda's administrative guidance, and are not indexed for inflation, Hacienda cannot approve a higher limit."
Tags: HSAs • Health Plan Design • Local Regulation
"The main exception to the HDHP minimum deductible requirement is the ability of an HDHP to provide first-dollar coverage (i.e., not subject to the deductible) for preventive care without affecting HSA eligibility. [1] First dollar telehealth coverage expiration for plan years beginning on or after January 1, 2025.... [2] First-dollar Covid testing/treatment expiration for plan years ending on or after January 1, 2025."
Tags: HSAs • Health Plan Design
"In 2025, tax-deductible/tax-free HSA contribution limits, HDHP in-network out-of-pocket maximums and HDHP minimum annual deductibles will rise from 2024 levels for both self-only and family coverage levels. The HSA catch-up contribution limit is set by statute and hasn't changed since 2009. The 2025 maximum annual employer contribution for an excepted-benefit HRA will increase[.]"
Tags: HRAs • HSAs • Health Plan Design
"All of the dollar limits currently in effect for 2024 will change for 2025, with the exception of ... [the] HSA catch-up contribution for individuals ages 55 and older ...[A table] compares the applicable dollar limits for HSAs, HDHPs and excepted benefit HRAs for 2024 and 2025."
Tags: HRAs • HSAs • Health Plan Design
"For calendar year 2025, the annual limitation on deductions under Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $4,300 ... [and] for an individual with family coverage under a high deductible health plan is $8,550. ... For calendar year 2025, a 'high deductible health plan' is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for family coverage. .... For plan years beginning in 2025, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA under Section 54.9831-1(c)(3)(viii) is $2,150. "
Tags: HRAs • HSAs • Health Plan Design
"Recent research ... has found only 6% of working Americans ages 18 to 34 correctly identified the full benefits of an HSA ... While offering an HSA option to one's workforce is important, educating younger generations just entering the workforce on the values of an HSA is especially critical."
Tags: HSAs • Health Plan Administration
"Consistent with the proposal, the term ' IRA' includes health savings accounts (HSA) and certain other tax-advantaged trusts and plans. The final regulation includes owners of HSAs in the definition of ' retirement investor.' "
Tags: Fiduciary Duties • HSAs • IRAs
"[T]he majority (60 percent) of [HSA] accountholders reported that they are using the account to take advantage of employer contributions. Similarly, 58 percent opened their HSA to save for future health care expenses and 52 percent to save on taxes.... Almost one-half of accountholders would be more likely to accumulate and invest unused funds if they were provided an annual review of their HSA balance, and one-third (35 percent) would be more likely to accumulate and invest unused funds if information about the account benefits and how it works were sent to them via email."
Tags: HSAs
"Out of all the consumers expected to make an out-of-pocket payment for health care, Gen Z is the least likely (32%) to be aware that they would need to make such a payment. This lack of awareness reverberates into their saving habits with one-third of employees under the age of 30 contributing nothing to their HSA annually, and only 14% contributing over $3,000 per year."
Tags: HSAs • Health Plan Design
"Inpatient admissions and days were higher in HSA plans than in PPOs.... HSA plan enrollees used emergency departments less than PPO enrollees.... HSA plan enrollees filled fewer prescriptions as compared with PPO enrollees.... Among individuals with no health conditions, HSA plans resulted in fewer emergency department visits relative to PPO enrollees, fewer specialist visits, and fewer prescription drug fills, while visits to primary care providers increased."
Tags: HSAs • Health Plan Costs
"Retirement and health experts encourage the use of health savings account, but also warn that not all HSA providers are the same when it comes to fee structures and investment options.... [A]llowing participants to select their own HSA provider could enable participants to seek different investment options, but it would dramatically reduce the operational efficiency for the employer."
Tags: HSAs
"Depending on how the underlying program is structured, some services might be reimbursable if presented as a requirement implicating the plan's cost sharing features, such as member copays. In such instances, part or all of the fee might actually satisfy IRC Section 213(d), thereby qualifying for reimbursement on the basis of a qualifying and eligible individual healthcare related expense."
Tags: Cafeteria Plans • HSAs
"Only 53% of employers offer health coverage, ... and of those that do, just 24% offer HSA-capable coverage.... HSA contributions have remained stagnant, with a mere half of eligibles seeding their HSA, which is unchanged since 2017. Average annual individual contributions actually declined to $1,880 in 2021.... As many as 88% of accounts remained in capital preservation (money market) funds in 2021."
Tags: HSAs • Health Plan Design
"HSA contributions for a taxable year cannot be made earlier than the start of that year or later than the due date for the account holder's federal income tax return for that year.... [F]actors to consider when evaluating your timing options: [1] Prorating based on employment ... [2] Risk of overcontribution ... [3] Employer's tax deduction ... [4] Nondiscrimination testing ... [5] Expense-timing considerations."
Tags: HSAs
"Average employee contributions rose to $1,962, while the average employer contribution decreased slightly to $762.... Over one-half of accountholders withdrew funds. The average distribution rose to $1,868, continuing to rise from the COVID-era lows observed in 2020."
Tags: HSAs
12 pages. "Supported by stock market tailwinds, HSA assets saw record growth during 2023.... At the end of 2023, there were $123 billion in HSA assets held in over 37 million accounts, a year-over-year increase of 19% for assets and 5% for accounts.... About 2.9 million HSAs, representing almost 8% of all accounts, have at least a portion of their HSA dollars invested. ...Account holders contributed $50 billion to their accounts in 2023 (up 7% from the year prior) and withdrew $39 billion from their accounts during 2023 (up 13% from year prior)."
Tags: HSAs
"End-of-year balances increased in 2022 to $4,607, but overall, average balances are still modest.... Relative to 2022, average ... individual contributions rose to $1,962, while the average employer contribution decreased slightly to $762.... [O]ver one-half of accountholders withdrew funds."
Tags: HSAs
"What resources can I share with employees to be ready for HSA tax filing? ... Can account holders make HSA contributions for the previous tax year? ... What if people accidentally put too much money in their HSA? ... Where can people find HSA tax forms?"
"This [IRS] news release may be helpful to those on the 'front lines' of plan administration, who are sometimes asked to explain the reasons for operating rules or decisions. Like last year's IRS guidance on substantiation shortcuts, it also serves as a reminder of the importance of obtaining adequate and appropriate substantiation before reimbursing claims, and highlights the challenges involved with certain expenses."
Tags: Cafeteria Plans • HSAs • Health Plan Administration
"While young professionals tend to champion mental health and investing in their physical and emotional well-being, Inspira found that nearly one-third of employees younger than 30 contribute nothing to their HSA annually (a higher figure than any other generation), and only 14% contribute more than $3,000 per year (a lower percentage than any other generation)."
Tags: HSAs • Health Plan Design
"HSA balances continued to increase over the course of the year, despite higher spending on health care.... Accounts that received an employer contribution saw higher total contributions and were more likely to invest.... Most accountholders took a distribution in 2022.... Relatively few HSAs are invested.... Age and tenure play a major role in HSA utilization."
Tags: HSAs • Health Plan Costs • Health Plan Design
"Some companies mistakenly claim that notes from doctors based merely on self-reported health information can convert non-medical food, wellness and exercise expenses into medical expenses ... Such a note would not establish that an otherwise personal expense satisfies the requirement that it be related to a targeted diagnosis-specific activity or treatment[.]"
Tags: Cafeteria Plans • HRAs • HSAs • Health Plan Administration
"Employees who got a matching contribution not only showed a higher likelihood of putting money into their HSA, but they also contributed significantly more compared to those who only received a seed ... [T]he match approach also saved the organization money, with the employer contributing 42% less compared to the seed-only employer. And because the contribution match encouraged employees to add extra funds to their HSA, they had 24% higher HSA balances than those only getting a seed contribution."
Tags: HSAs • Health Plan Costs • Health Plan Design
"HSAs are viewed as personal accounts that are not ERISA-covered welfare benefit plans, so long as employee participation is completely voluntary and the employer's involvement is limited. However, there are ways in which an HSA contribution program could become subject to ERISA. Those ERISA triggers should be avoided because ERISA's compliance obligations were not crafted with HSAs in mind, and it is not clear how and whether all of ERISA's requirements could be satisfied by an HSA program."
Tags: HSAs
"About two-thirds of individuals reported that they have a choice of health plan.... Enrollment in HSA-eligible health plans and health reimbursement arrangements appears to have leveled off, bouncing around between 18-19% between 2020 and 2023. Enrollment in health plans with high deductibles that were not eligible to be paired with an HSA fell from 12% to 9% between 2022 and 2023, after having reached 15% in 2020.... HDHP enrollees are less likely to be extremely or very satisfied than traditional plan enrollees. "
Tags: HSAs • Health Plan Design