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Benefits in the News > By Subject >

Health savings accounts (HSAs)

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Health Savings Accounts Continue Rapid Growth
"People saving in HSAs do not do so at the expense of a defined contribution (DC) retirement plan, such as a 401(k). Fidelity found that during 2016, people who had both DC and HSA accounts saved on average 10.7 percent of their annual income in the retirement account. Those with just a DC account saved on average 8.2 percent in it.... Seventy-six percent are satisfied with the ease of using their HSA for medical expenses, 77 percent with the quality of their health care coverage, and 77 percent with how the plan helps them manage their health care costs." (Fidelity)
Survey Finds Healthy Trends in HSA Offerings, Enrollments
"35.1% of all plans offer a health savings account (HSA) or a health reimbursement arrangement (HRA), though that's up only slightly from the 34% who did in 2015. However, an HSA is offered in a quarter (24.6%) of plans, a 21.8% increase from five years ago ... HSA enrollment stands at 17%, up 25.9% from 2015 -- and nearly 140% from five years ago. The average employer contribution to an HSA is $474 for a single employee (down 3.5% from 2015 and 17.6% from five years ago) and $801 for a family (down 9.2% from last year and 13.7% from five years ago)." (National Association of Plan Advisors [NAPA])
FSA, HRA, and HSA Comparison Chart (PDF)
Chart summarizes 26 aspects of the programs, including eligibility, portability, discrimination rules, funding requirements, maximum contribution levels, and balance carry-overs. (Marsh Consulting Group)
How Health Savings Accounts Measure Up
"An HSA is offered in 24.6 percent of plans, a 21.8 percent increase from five years ago. HSA enrollment is at 17 percent, a 25.9 percent increase from 2015, and nearly a 140 percent increase from five years ago. The average employer contribution to an HSA is $474 for a single employee (down 3.5 percent from 2015 and 17.6 percent from five years ago) and $801 for a family (down 9.2 percent from last year and 13.7 percent from five years ago)." (United Benefit Advisors)
House Version of Repeal-and-Replace Health Bill Would Make Significant Changes to HSAs
"[T]he AHCA would [1] increase annual HSA contribution limits to equal the maximum HDHP out-of-pocket payment amounts ... [2] treat an HSA as having been established on the date HDHP coverage begins if the HSA is established within 60 days of such date.... [3] restore the 10 percent additional penalty tax on HSA distributions that are not used for qualified medical expenses ... [4] allow spouses that are both eligible to make catch-up contributions to choose which of their HSAs will receive the additional contributions; and [5] allow over-the-counter (i.e., nonprescription) medications to be considered HSA-eligible expenses." (Ascensus)
[Official Guidance] Text of IRS Rev. Proc. 2017-37: 2018 Inflation Adjusted Amounts for Health Savings Accounts (HSAs) (PDF)
"For calendar year 2018, the annual limitation on deductions ... for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions ... for an individual with family coverage under a high deductible health plan is $6,900. For calendar year 2018, a 'high deductible health plan' is defined ... as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage." (Internal Revenue Service [IRS])
Employers Support HSAs as a Benefits Strategy
"Nearly 60% of the respondents believe HSAs should replace flexible spending accounts (FSAs), and nearly three-fourths of employers think HSAs should be open to all employees, not just those enrolled in a high-deductible health plan (HDHP).... The average HSA account balance was $3,161. A little more than 40% of respondents indicate that 25% or fewer of their participants use up the entire HSA balance every year and an additional 35% of plans state that 26% to 50% of their participants use their entire balance every year.... Only 21% of surveyed employers are concerned about the fiduciary liability of sponsoring a HSA-HDHP." (planadviser)
Health Savings Accounts (HSAs) and How They Intersect with Defined Contribution Plans: Survey Results
11 pages. "The majority (75.3 percent) of employers view the HSA as part of their retirement benefits strategy. Nearly 60 percent of employers believe HSAs should replace Flexible Spending Accounts (FSAs), and nearly three-fourths of employers think that HSAs should be open to all employees, not just those enrolled in a high-deductible health plan." (Plan Sponsor Council of America [PSCA])
Employees Still Can't Find Out How Much Health Providers Charge
"More Americans are enrolling in high-deductible health plans, which means they'll pay more out of pocket for 'commodity' health services -- whether lab tests or common surgeries such as hip and knee replacements. They can shop around for high-quality providers that charge less, but they are finding it difficult to do so." (Society for Human Resource Management [SHRM])
HSAs are Poised for the Spotlight in the Trump Era
"Although the AHCA's initial failure led to uncertainty on the specifics of health care reform, there appears to be a broad push to increase the use of [HSAs]. Various proposals have included plans to remove the requirement to have a high-deductible health plan in order to contribute to an HSA, raise contribution limits to $6,550 for individuals and $13,100 for families (from their current limits of $3,400 and $6,750, respectively), and to create a new type of account called a Roth HSA." (Manning & Napier)
HSA Plans and Onsite Clinics: Can This Marriage Be Saved?
"Under rules for HSA-eligible plans, only preventive services can be provided at no cost; employees need to pay the full cost of a non-preventive visit before they satisfy the plan deductible. Some employers with onsite clinics may be unknowingly disqualifying employees, understating their own tax liability, and incorrectly filing employment tax forms." (Mercer/Signal: US Health News )
Health Savings Accounts: Can They Work for Everyone? (PDF)
"More than half (53%) of all large employers offer an HSA-eligible plan, but under a fourth (24%) of covered employees are enrolled in one.... Despite the cost savings, for the most part large employers still offer these plans as a choice, rather than as the only medical plan. Just 6% of all large employers offer an HSA-eligible plan as a 'full replacement' of their traditional medical plan." (Mercer)
What is a Limited Purpose FSA, and How Can Account Holders Use It?
"A limited purpose FSA (LPFSA) is a healthcare spending account that can only be used for eligible vision and dental expenses. Unlike a healthcare FSA, however, an LPFSA can be held at the same time as [an HSA]. When coordinated with an HSA, the LPFSA can further reduce your taxes while allowing you to allocate HSA funds to other purposes -- including retirement." (DataPath)
Can HSAs Work for Everyone? (PDF)
"The average per-employee cost of HSA-eligible plans is 13% less than that of a traditional PPO.... Despite the cost savings, for the most part large employers still offer these plans as a choice, rather than as the only medical plan. Just 6% of all large employers offer an HSA-eligible plan as a 'full replacement' of their traditional medical plan.... Although full-replacement HSA plans cost more than those offered as a choice, when you compare total health plan cost per employee -- across all medical plans offered -- employers offering full replacement HSA-eligible plans spend much less." (Mercer)
Cash Allowances for Employees to Select from Benefits Suite?
"Generally, if an employer wants to pay its employees a cash allowance that is earmarked for certain benefits, the arrangement has to qualify under one of the plans the IRS has established (e.g. HRA, FSA, HSA, cafeteria plan).... [T]he cafeteria plan rules were set up to accommodate a 'bucket' approach, but employers must comply with the IRS's requirements when setting up such a plan. The money in a full flex plan, that allows employees to choose and trade off among different benefits, can come from employer or employee contributions." (HR Daily Advisor)
What You Should Know Before You Name an HSA Beneficiary
"If you name your spouse as your HSA beneficiary, at your death the HSA will become your spouse's own HSA.... Distributions for qualified medical expenses will be income tax free.... [N]on-spouse HSA beneficiaries do not fare very well! The account value of the HSA account becomes taxable to the non-spouse beneficiary in the year of your death. That means the entire account will be taxable in one year." (Slott Report)
[Opinion] House Obamacare Repeal Bill Limits HSAs for Millions of Americans
"The House Republican American Health Care Act Managers Amendment would not allow Americans to use their tax credits to fund an HSA. Instead of using their tax credit/HSA to pay for doctor visits, prescriptions and OTC drugs, Americans will only be allowed to use their credit for insurance. This is a big mistake -- and a giveaway to insurers." (National Center for Policy Analysis Health Policy Blog)
Companies Behind Health Savings Accounts Could Bank on Big Profits Under GOP Plan
"Industry officials are eager to reach new markets, including baby boomers in Medicare and enrollees in the military's Tricare system, for whom -- under current law -- HSAs are off-limits. They also want to manage larger accounts that generate more revenue. Republican proposals in Congress could help accomplish both." (Kaiser Health News)
Survey Highlights Employees' Health Plan Enrollment Drivers
"[M]ore than 40 percent of the HSA participants interviewed said they enrolled in HSAs in order to use the accounts as savings vehicles for future health care needs. This response came in ahead of 'tax savings,' which 21 percent selected, and 'lower premiums' offered by High Deductible Health Plans (HDHP), which only 9.5 percent of survey respondents selected.... When asked to rate the importance of several factors when evaluating health account vendors, 85 percent of benefits decision-makers rated 'employee customer service' as very important, while 81 percent ranked 'overall employee experience' as very important." (Connect Your Care)
HSA Considerations for Employers
"[S]tudies have shown that HSA owners do spend less on health care. However, some critics suggest that lower spending by HSA owners indicates HSA owners forego necessary health care.... Without having available, and using, adequate resources to make informed decisions about health care needs and options, employees will not benefit from the HSA option." (Jackson Lewis P.C.)
[Opinion] ECFC Letters to Congress in Support of Proposed Health Savings Act (PDF)
"Enhancing access to Health Saving Accounts (HSAs) by expanding eligibility rules and increasing the maximum contribution limit and allowing their funds to be used for evolving health care needs and services, helps American families save for and manage their growing health care expenses. [ECFC believes] that the provisions of this bill should be included in any effort made by Congress to reform the health care system." (Employers Council on Flexible Compensation [ECFC])
2016 Year-End Devenir HSA Research Report
"The number of HSA accounts rose to 20 million, holding almost $37 billion in assets, a year over year increase of 22% for HSA assets and 20% for accounts for the period of December 31, 2015 to December 31, 2016.... The average investment account holder has a $14,971 average total balance ... Health plan partnerships continued as the leading driver of new account growth, accounting for 37% of new accounts opened in 2016." (Devenir)
Health Savings Accounts and Filing Your Taxes
"As you prepare and compile tax documents, it's important to know what forms you may need to file if you have a Health Savings Account (HSA). In addition to Form 1040, there are two other very important documents -- Form 1099-SA and Form 8889." (DataPath)
Obamacare Repeal May Birth a New Retirement Account
"Under the Cassidy-Collins plan, Roth HSA contributions would not be tax-deductible, cutting off one leg of the triple advantage. However, unlike regular HSAs, you wouldn't need a high-deductible health plan to qualify for a Roth HSA -- and you could pay health-insurance premiums with the account." (CNBC)
[Opinion] Lifetime HSAs: The 'Antisocial' Health Reform that's Good for You!
"Under an individualized lifecycle theory of saving for future health care needs, most young peoples' premium dollars would accrue in their HSAs. Only a small portion of their premiums would go for catastrophic insurance. Over time HSA balances would grow and the ratio of HSA deposits to insurance premiums would decline as one's health risk increases with age." (National Center for Policy Analysis Health Policy Blog)
Healthcare Benefits in 2017: What Employers Have to Say
"2016 marked a milestone for healthcare consumerism, with the amount of organizations offering HDHPs jumping from 28% four years ago to 39% in last year's survey to 53% in this year's survey.... With this rise in HDHPs came an increase in the number of employees being enrolled in a Health Savings Account [HSA], Healthcare Reimbursement Arrangement [HRA], or Flexible Spending Account [FSA] ... 51.5% of respondents' employees are enrolled in one or more of these plans/arrangements." (Healthcare Trends Institute)
Health Savings Accounts: A Growing Tool for Consumers (PDF)
"As of January 2016, 59 plans offering HSA/HDHPs reported approximately 20.2 million HSA/HDHP enrollees, up from 19.7 million in 2015, or an annual increase of 2.5 percent.... The [largest group] of HSA/HDHP enrollees (35 percent) were ages 45-64, with 30 percent ages 25-44 ... Large group plans (firms with more than 50 employees) accounted for over 75 percent of all HSA/HDHP enrollment." (America's Health Insurance Plans [AHIP])
Investing HSA Funds Is Key to Substantial Growth
"The ability to invest HSA funds is a significant factor in helping drive account growth. In June 2016, HSA investment assets grew 23 percent from the previous year ... However, it is estimated that only 3 percent of all HSA account holders invest, which means the overwhelming majority of account owners are missing out." (DataPath)
[Official Guidance] Text of IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans, for Use in Preparing 2016 Returns (PDF)
22 pages; Feb. 10, 2017. "An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member, on behalf of an eligible individual.... An Archer MSA may receive contributions from an eligible individual and his or her employer, but not both in the same year... A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is enrolled in Medicare.... A health FSA may receive contributions from an eligible individual. Employers may also contribute.... An HRA must receive contributions from the employer only. Employees may not contribute." (Internal Revenue Service [IRS])
Do Employees Truly Understand the Advantages of an HDHP/HSA?
"While high deductibles can initially scare your employees away, once they compare the overall savings of a lower HDHP premium and the tax advantages of an HSA, they might become a more tempting choice. Make a few subtle changes when you communicate the HDHP/HSA plan and your participation might just go up[.]" (Frenkel Benefits)
Older Workers and Retirees: Avoiding HSA Pitfalls
"Employers sponsoring HDHP/HSA programs for older workers need to be aware of the potential complications caused by Medicare Part A entitlement while those offering HDHP/HSA programs for retirees need to be concerned about the HSA comparability rules. Failure to address these issues can result in participant aggravation and potential excise taxes." (Conduent)
IRS Releases 2016 Form 8889 and Instructions for HSA Reporting
"Although Form 8889 is filed by HSA holders as an attachment to Form 1040, employers and advisors working with HSAs should have a basic understanding of its scope. The similarity of this year's and last year's versions was expected, as the rules for HSAs have remained relatively stable since last year[.]" (Thomson Reuters / EBIA)
Comparison Chart: Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Accounts (HRAs) (PDF)
Chart addresses contribution limits, portability, eligible expenses, substantiation, and other requirements. (Acclaris)
[Opinion] HSAs: 'Tax-Break Trifecta' or Insurance Gimmick Benefiting the Wealthy?
"Several proposals ... would increase HSA contribution limits. Ryan's plan would allow the tax-free contributions to total as much as the insurance plan's annual deductible and out-of-pocket maximum. For families, that could be more than $14,000 a year. Sen. Rand Paul's, R-Ky., Obamacare Replacement Act would get rid of the upper limit on contributions entirely. It would also allow the accounts to be coupled with any type of insurance, not just high-deductible plans." (Kaiser Health News)
Health Savings Account Not Exempt in Georgia Bankruptcy
"[The U.S. Court of Appeals for the Eleventh Circuit] based its opinion on a ruling by the Supreme Court of Georgia, to which the circuit previously certified the question interpreting Georgia's exemption statutes regarding health savings accounts, or HSA's." [Mooney v. Webster (In re Mooney), No. 15-11229 (11th Cir. Jan. 27, 2017)] (Bloomberg BNA)
HSA vs FSA: Which is Better?
"The Health Savings Account is like an IRA. You get to fund it with pre-tax dollars and it's typically administered by a financial institution. But unlike an IRA, you get to use the funds when you need them (not just in retirement) towards qualifying medical costs.... The Flexible Spending Account is a pre-tax dollars savings account your company administers where you're allowed to save up a year's worth of health care costs. Most people use it to pay for deductibles, co-pays, and household health care items." [A comparison chart is included.] (PTMoney)
Important Things to Know About HSAs
"[1] HSA portability and ownership ... [2] Tax benefits, 3 times ... [3] Flexible contributions ... [4] Rollover funds ... [5] Option to invest ... [6] Pay for prior medical expenses ... [7] Use it as a retirement income ... [8] Make catch-up contributions ... [9] Cover COBRA and Medicare premiums ... [10] Change of healthcare plans? No problem." (DataPath)
Are HSAs Set to Follow Growth of 401(k)s?
"[A]lthough introduced as part of [ERISA] in 1974, it took more than 10 years for 401(k)s to gain the same percentage of market share that HSAs have now. In addition, 401(k)s were met with reluctance at first. Similarly, the retirement industry first saw HSAs as competition for savings dollars ... but as health care became a bigger part of the conversation about expenses in retirement, HSAs are now being thought of as a complementary savings vehicle." (PLANSPONSOR)
How Do Health FSA Carryovers Affect HSA Eligibility?
"Carryovers in a general-purpose health FSA will make an employee ineligible to contribute to an HSA for the entire subsequent plan year, even after the carryover is exhausted and even if the employee does not make or receive new health FSA contributions for that plan year. HSA eligibility should not be adversely affected, however, if the plan permits carryovers but the participant actually has a $0 balance at year-end." (Thomson Reuters / EBIA)
Avoiding Discrimination: HSA Contributions for Former Employees
"While contributions to former employee HSAs may or may not happen frequently, employers should always remain diligent with regard to nondiscrimination requirements. Failure to follow certain comparability requirements could result in a 35% excise tax on all employer contributions not just on the discriminatory contributions." (Compliance Dashboard)
Health Savings Account Balances, Contributions, Distributions, and Other Vital Statistics, 2015 (PDF)
"Enrollment in high-deductible, HSA-eligible health plans is estimated to be between 20-22 million policyholders and their dependents. Over 4 in 5 HSAs (85 percent) have been opened since the beginning of 2011. As of the end of 2015, the average HSA balance was $1,844, up from $1,332 at the beginning of the year. Average account balances increased with the age of the owner of the account.... About 3 percent of HSAs had invested assets (beyond cash)." (Employee Benefit Research Institute [EBRI])
HSA Tax Reporting for the Account Holder
"Form 1099-SA does not break down withdrawals for eligible expenses and non-eligible expenses.... You are responsible for tracking eligible and non-eligible expenses. You receive a copy of Form 5498-SA by May 31 each year.... Trustees are not required to issue Form 5498-SA until May 31 because you can continue to make contributions for a calendar year up to the date you file your income tax return or the due-date for federal tax returns (usually April 15), whichever comes first. That means you must rely on other documentation (W-2s, account statements, and web-based transaction searches) to report your HSA contributions on your income tax returns. You complete and submit Form 8889 as part of your federal income tax return." (Xerox HR Insights)
[Guidance Overview] IRS Letter Explains How HSA Nondiscrimination Rules Apply to Former Employees
"After noting that the IRS could only provide a definitive answer through the private letter ruling process, the letter explains that employers' HSA contributions generally are subject to a nondiscrimination rule that requires those contributions to be made in comparable amounts to the HSAs of all comparable employees.... Retirees and other former employees are tested separately under the comparability rules, so employers can give those individuals different HSA contributions than active employees when the comparability rules apply." (Thomson Reuters / EBIA)
HSA Enrollment May Surge During Trump Administration
"Since 2013, HSAs have seen a 53.7 increase in enrollments.... [If President-elect Trump] is able to successfully work with Congress to get his plan approved, the market would presumably see an even greater surge in HSA enrollment as they become more accessible. For third party administrators who offer HSA administration services, this could mean a potential bonanza in revenue." (DataPath)
The Sandbox Bully: Health Savings Accounts, Onsite Clinics, and Telemedicine
"Employers, particularly those employers that feel they are running out of room to further pare down medical plan design(s) or shift cost-sharing to employees, are increasingly looking toward alternatives like telemedicine and onsite clinics to help lower the cost of their group health plans.... For all of their advantages, health savings accounts (HSAs) do not easily co-exist with many other benefits. This article focuses on the HSA-compatibility issues employers face when implementing telemedicine and/or an onsite clinic in conjunction with a high deductible health plan (HDHP) with an HSA and potential solutions." (Haynes and Boone, LLP)
Retirement Balances Rise, A Sharp Increase in Adoption of Health Savings Accounts
"The average 401(k) balance rose for the second straight quarter, up 2 percent from Q2 and 7 percent year-over-year. The average IRA balance increased 5 percent from Q2 and 6 percent year-over-year.... In the past year, the number of HSAs provided by Fidelity grew 43 percent to 501,000, with an average HSA balance of $3,150.... [W]hile more people are using HSAs, they're not spending as much as they thought they would." (Fidelity)
It's Open Enrollment: Have You Taken a Good Look at an HSA?
"[M]any HSA owners fail to take maximum advantage of their HSAs. More affluent employees, in particular, are foregoing valuable tax benefits by not steering their HSA balances toward long-term investments. And even employees who are using a 'spend as they go' approach to their HSAs should consider using the accounts to take advantage of the tax breaks." (Morningstar)
The Rights and Duties of Your HSA Trustee
"Your HSA trust agreement cannot limit your reimbursements to eligible expenses.... Your trustee must provide at least one way for you to make distributions (withdrawals) for non-eligible expenses.... Your trustee can place certain restrictions on distributions.... Your HSA trustee does not track your deposits to ensure that you don't exceed your maximum annual contribution.... Your trustee does not have to accept a rollover or trustee-to-trustee transfer from another HSA or an Archer MSA.... Your trustee must surrender balances if you want to move funds from that trustee via a rollover or trustee-to-trustee transfer." (Xerox HR Insights)
Address HSA Misconceptions During Open Enrollment
"[E]mployers should use open enrollment to position the HSA program as an enhancement to the benefits package.... Send the message that employees can win financially by enrolling in an HSA ... Employees often ... mistakenly apply the 'use it or lose it' feature of health care flexible savings accounts (FSAs) to an HSA ... Employees also can take their HSAs with them when they change jobs or retire." (Society for Human Resource Management [SHRM])
Handling HSAs After Death or Divorce
"HSAs are actually handled like IRAs in a divorce. Interest in an HSA can be transferred between spouses as part of a divorce or separation agreement. It is not considered a taxable transfer, and the interest that is transferred keeps its identity as an HSA for the receiving spouse. The transferred HSA can be moved to a new trustee or administrator if desired and invested as the recipient sees fit.... An HSA inherited from a spouse ... becomes the account of the surviving spouse, and he or she has all the same rights as the original owner. There is no tax impact if the funds are used to pay for eligible medical expenses." (Morningstar Advisor)
Investment Advantages of Health Savings Accounts
"You don't have to use the HSA provider associated with your employer's health insurance company.... You can choose from many different types of investments within an HSA.... An HSA is portable.... You can reimburse yourself anytime.... After age 65, you can use HSA funds for any purpose, and you just have to pay ordinary income tax, without an early-withdrawal penalty." (nerdwallet)
Maintaining an ERISA Exemption for HSAs
"Generally, the [DOL] does not view HSAs as benefit plans subject to ERISA. However, the ERISA exemption is dependent on the employer playing a limited role in the HSA program. Employers should be aware of the following restrictions to avoid compromising the ERISA-exempt status of their HSA arrangements: [1] Allow voluntary participation.... [2] Avoid endorsement of a single HSA provider.... [3] Refuse employer compensation.... [4] Maintain employee control of funds." (Marsh Consulting Group)
Making Catch-Up Contributions to a Health Savings Account
"[Y]ou have to wait until the year you turn 55 to begin catch-up contributions for an HSA. As long as you have an HSA-eligible health insurance policy (with a deductible in 2016 of at least $1,300 for self-only coverage or $2,600 for family coverage), you can contribute an extra $1,000 to your HSA, even if it is before your birthday.... If you are not HSA-eligible for any part of the year, you will have to prorate your contributions, including your catch-up contributions[.]" (Kiplinger)
[Guidance Overview] Go All the Way with HSA: Everything HDHP/HSA You Need to Know (PDF)
57 presentation slides. Topics: What are the requirements for a plan to meet HDHP status? Which individuals are eligible to make or receive HSA contributions? What are the forms of disqualifying coverage that prevent HSA eligibility? What are the contribution limit rules for HSA-eligible individuals? How do the rules apply for individuals who gain or lose HSA eligibility mid-year? What tax reporting requirements apply to HSAs? How does HSA eligibility interact with Health FSA and HRA coverage? How and when can employers correct mistaken HSA contributions? (ABD Insurance & Financial Services)
[Opinion] Employees Need Congress to Protect Account-Based Health Plans
"Now more than ever, hardworking Americans need to rely on account-based plans such as Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) in order to make healthcare more affordable, manageable, and predictable. They are counting on Congress to recognize this and take action against the looming 'Cadillac' tax." (The Hill)
How an HSA Can Help You Save for Retirement
"HSAs are portable and can be transferred to the custodian of your choice. While many retirement accounts are subject to required minimum distributions once you reach age 70-1/2, HSAs do not have this requirement. There is also no level of income that excludes you from participating in HSAs as long as you have a qualifying high deductible health plan. You can also accumulate a balance in the account that can be used tax-free for future medical expenses." (U.S. News & World Report)
[Official Guidance] Text of 2016 IRS Instructions for Forms 1099-SA and 5498-SA (PDF)
"Due to the very low volume of paper Forms 1099-SA and 5498-SA received and processed by the IRS each year, these forms have been converted to an online fillable format.... File Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, to report distributions made from a health savings account (HSA), Archer medical savings account (Archer MSA), or Medicare Advantage MSA (MA MSA).... File Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, with the IRS on or before June 1, 2017, for each person for whom you maintained a [HSA, Archer MSA, or MA MSA] during 2016." (Internal Revenue Service [IRS])
[Official Guidance] Text of 2017 IRS Instructions for Forms 1099-SA and 5498-SA (PDF)
"File Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, to report distributions made from a health savings account (HSA), Archer medical savings account (Archer MSA), or Medicare Advantage MSA (MA MSA). The distribution may have been paid directly to a medical service provider or to the account holder. A separate return must be filed for each plan type.... File Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, with the IRS on or before June 1, 2018, for each person for whom you maintained a [HSA, MSA, or MA MSA] during 2017. You are required to file if you are the trustee or custodian of an HSA, Archer MSA, or MA MSA. A separate form is required for each type of plan." (Internal Revenue Service [IRS])
HSA Plans: A Retirement Benefit in Disguise? [Podcast]
"[This discussion explains] how employees at various stages in life can take advantage of HSAs, how they contribute to the evolving conversation of improving both health and wealth and ideas around creating benefits bundles to guide employee decision making. [It also includes] insights for employers about the importance of setting up internal cross functional teams between health and retirement benefits, how involving company leadership is paramount to success and why you need to have a three year plan for your benefits strategy." (Lockton)
Making HSAs Relevant to Millennials (PDF)
"[M]any Millennials are in the financial wellness game, but they're not accessing the HSA's full value.... [S]ome tips for tailoring the HSA message.... [1] Paint a picture.... [2] Highlight the unique now- or-later nature of HSAs.... [3] Illustrate the long-term impact.... [4] Tell the story differently ... [5] Encourage them to take action." (HSA Coach)

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