HSA News for May 19, 2025
HSA news is compiled weekly by Mr. HSA, Roy Ramthun.
News from Washington
Republican Tax Bill Expands 529s and HSAs, Limits Changes to Retirement
House Republicans’ sweeping 389-page tax bill, unveiled May 12, makes few direct references to retirement but proposes expanding ABLE, college savings and health savings accounts, introduces new investment accounts and adds tax deductions for seniors. The House Ways & Means Committee advanced the legislation on May 14 in a party-line vote.
An Increasingly Popular Healthcare Savings Strategy Could Get More Lucrative Under GOP Tax Bill
Republicans want to broaden rules for accounts designed to pay medical bills — which double as a retirement-planning tool that can give wealthier households a leg up. The tax bill that advanced from the House Ways and Means Committee this week is hundreds of pages long, but it devotes a portion of provisions to Health Savings Accounts.
House Tax Package Could Allow for FSA-to-HSA Rollovers
The House Ways and Means Committee tax package includes many provisions related to HSAs, HRAs, and FSAs. One could let clients who are closing out employer-sponsored HRAs or FSAs roll the unused cash into HSAs. Another could let one spouse in a couple contribute to an HSA even though the other spouse is contributing to an FSA.
Compliance Corner
7 Things to Know About HSA Compliance
HSAs offer an excellent opportunity for participants to save money on healthcare expenses and for employers to support their employees’ wellness needs in a cost-efficient way. But there are HSA rules and regulations you and your employees need to follow in order to stay compliant. Keep reading to learn more about HSA compliance topics.
Is a Group Medical Plan Still HSA-Qualified if an Employer Funds 100% of the Deductible?
Employers have several options to cover their employees' deductible expenses with or without giving workers money beyond their claims responsibility and without disqualifying them from remaining HSA-eligible. The employer must consider its budget and goals in crafting the best approach to this attractive positioning of its medical benefit.
I'm Switching from a Health FSA to an HSA. Can I Roll Over My Balance to Seed My HSA?
Current tax law does not permit rollovers from a Health FSA to an HSA. A provision was included in the Health Opportunity Patient Empowerment Act of 2006 and permitted rollovers beginning in 2007 but ending in 2011. That law was written in such a way that very few employees satisfied the requirements to execute a rollover. But that could change soon.
HSA Industry News
Lively Announces $2 Billion in Assets, Showcasing the Value of an Easy-to-Use HSA
Lively, Inc. announced that it has surpassed $2 billion in HSA assets on their platform. Launched as a direct-to-consumer HSA provider in 2016, Lively has since expanded to offer a full suite of health and lifestyle benefits for business customers, including FSAs, HRAs, LSAs, commuter benefits, medical travel accounts, and COBRA.
HSAs & Retirement
As Longevity Increases, Retirement Planning Struggles to Keep Up
The number of Americans living to age 100 is expected to quadruple by 2054, but financial planning has not kept up with rising lifespans, putting millions at risk of outliving their savings, according to research from Nationwide Retirement Institute and the American College of Financial Services.
How My Millennial Clients Need to Adjust Their Retirement Plans Based On Peak 65
While Baby Boomers face unique challenges, such as rising healthcare costs and longevity risk, these issues also serve as a cautionary tale for millennials. Millennials have the advantage of time, but if they don’t optimize their strategies now, they could face similar hurdles down the road. As a millennial finance expert, I often tell my peers that small, consistent actions taken today can significantly impact future retirement security.
Consumer-Driven Health Care
After the Pandemic, Patients Have Changed the Way They Get Care
A little over five years after the arrival of COVID-19, Americans are viewing the healthcare industry much differently. Some patients are opting for urgent care or non-traditional providers. But others are simply not getting any care, due to rising costs, even for those with insurance. It’s clear that’s a trend that appears to be here to stay.