HSA News for March 16, 2026
HSA news is compiled by Mr. HSA, Roy Ramthun.
Compliance Corner
How Does a Health FSA Carryover Affect Eligibility to Contribute to an HSA?
If you participate in a general Health FSA and roll over a balance (even as little as $1) into the following general Health FSA plan year, you cannot open and fund an HSA during the entire 12-month period that you are covered on that general Health FSA– even if you spend your full carryover balance well before the end of the new plan year.
IRS Guidance Could Cripple New HSA Direct Primary Care Access Law
The IRS posted a batch of guidance in December 2025 that suggested how it might interpret the direct primary care membership provision in the One Big Beautiful Bill Act. But commenters say the Internal Revenue Service may be about to keep OBBBA from letting HSA users have access to no-deductible primary care.
HSA Eligibility for Veterans and American Indians
Individuals who receive services at a Veterans Affairs or an Indian Health Services facility generally lose HSA eligibility for a three-month period. Veterans with a service-connected disability can receive VA services without the three-month block on HSA contributions. There are pros and cons to these special rules.
Market Trends
Demographic Shift to Spark Major Wealth Transfer, Retirement Changes
The U.S. faces a major demographic shift poised to transform retirement and financial advisory services. By 2040, 22% of the population will be at retirement age, up from 19% in 2025 and just 12% in 2005, according to a new report. The coming intergenerational transfer of wealth is identified as one of the five forces reshaping the retirement landscape, according to another report.
HSAs & Retirement
Is This the Most Overlooked Retirement Account?
Health Savings Accounts may not be as popular as IRAs or 401(k)s. And while they're not strictly a retirement account, they can easily serve as one. If you are able to fund an HSA, it pays to do so and reserve those funds for retirement because they let you save for healthcare in a tax-advantaged fashion.
Maxed Out Your IRA? Here's What to Do Next.
Since healthcare costs tend to rise in retirement, it's a good idea to fund a Health Savings Account once you've maxed out your IRA and reserve that account for your senior years. You should also know that while non-medical HSA withdrawals are subject to penalties, that restriction goes away once you turn 65.
Still Working at 65? Here's Why You May Want to Delay Your Medicare Enrollment.
If you're still working when you become eligible for Medicare, it may not make sense to sign up if you have good health coverage through your employer. But there's a less obvious reason to hold off on Medicare enrollment. Waiting to sign up could allow you to keep contributing to an HSA. And what's great about them is that they're triple tax-advantaged.
Maximizing Your HSA
Can You Pay Medicare Penalties and Surcharges with Tax-free HSA Withdrawals?
When HSA owners are enrolled on Medicare and no longer eligible to contribute, they can withdraw funds tax-free to pay their Medicare premiums, Medicare cost sharing, and services not covered by Medicare. What about Medicare penalties for enrolling late? Read on to learn more about whether they can be reimbursed tax-free from an HSA.
Consumer-Driven Health Care
Paying Cash for U.S. Medical Care Could Save You a Fortune
When you pay your provider directly without routing the transaction through your insurance company, something remarkable happens: The price often drops significantly. The reason is economics. Insurance billing is expensive and slow. When you pay cash up front, the provider gets immediate payment with minimal paperwork. Those savings get passed on to you.