HSA News for July 20, 2026
HSA news is compiled weekly by Mr. HSA, Roy Ramthuun.
News from Washington
IRS Announces Tax Relief for Taxpayers Impacted by Severe Storms, Tornadoes and Flooding in the State of Michigan
The IRS announced tax relief for individuals and businesses in Michigan affected by severe storms, tornadoes, and flooding that began on April 10, 2026. These taxpayers now have until November 2, 2026, to file various federal individual and business tax returns, make tax payments, and make 2025 contributions to IRAs and HSAs, if eligible.
IRS Announces Tax Relief for Taxpayers Impacted by Severe Storms, Tornadoes and Flooding in the State of Wisconsin
The IRS announced tax relief for individuals and businesses in Wisconsin affected by severe storms, tornadoes, and flooding that began on April 13, 2026. These taxpayers now have until November 2, 2026, to file various federal individual and business tax returns, make tax payments, and make 2025 contributions to IRAs and HSAs, if eligible.
Compliance Corner
The HSA-Medicare Collision: Why Enrolling at 65 Can Make Contributions Tricky
An HSA can be a great resource for saving money on taxes while giving yourself a financial cushion in the event of a health emergency. But the rules for HSA contributions change when you enroll in Medicare. Enrolling in Medicare won’t affect the money you have already put into your HSA, but it will affect your ability to make new contributions.
Part Two: Are Health Savings Accounts Subject to ERISA and COBRA? No, Except . . .
Health Savings Accounts do not naturally fall under ERISA, but employers are wise to keep HSAs at an arm's-length transaction outside their influence. That way, they can ensure that ERISA, and its corresponding requirements and paperwork, will not apply to their HSA program.
HSA Studies & Analysis
What Are HSA Industry Leaders' Key Expansion Priorities in This Congress?
Industry leaders are focused on expanding the Health Savings Account opportunity to otherwise-eligible individuals who are excluded by other coverage that provides little or no additional medical benefit. Whether a budget reconciliation bill ultimately passes or not, lawmakers have a clearer sense of where the Health Savings Account industry stands.
One More Patch: What the LaHood Bill Tells Us About How HSAs Actually Get Fixed
Recently, Rep. Darin LaHood (R-IL) introduced the Health Savings for Families Act. It's a narrow bill addressing a narrow problem: individuals cannot contribute to an HSA if their spouse participates in a health FSA. It's a small provision. But it's also a familiar pattern, and after twenty years watching this space, I think the pattern is the real story.
HSAs & Retirement
At 65, Your HSA Stops Being a Medical Account and Starts Beating Your 401(k)
If you have an HSA, here’s the part nobody tells you: once you turn 65, that same HSA quietly transforms into something that beats your 401(k) at its own game. You can pull money out for anything, groceries, a cruise, your grandkid’s tuition, and pay only ordinary income tax, exactly like a traditional IRA. Medical withdrawals stay 100% tax-free forever.
Why Some Advisors Prefer HSAs Over IRAs for Retirement Savings
Some clients might be better off stocking an HSA to the gills and leaving it relatively untouched, say some financial advisors. According to this strategy, it’s better to pay for medical expenses out of pocket to maximize funds in the HSA for investing and tax-free growth. Advisors also recommend contributing as much as possible to HSAs and using payroll deductions to save both income and payroll taxes.
$10,000 Per Month for Long-Term Care: How Escalating Costs Impact Family Finances
Nursing home care costs an average of about $10,000 per month in the U.S., making it a major burden for many families. Medicare generally does not cover long-term nursing home care, and even short-term coverage can leave patients with steep copays. Planning ahead can help families explore HSAs and other options before care becomes urgent.
Maximizing Your HSA
You’re 55 and the End Is Within Sight — as Retirement Nears, Here’s What You Need to Know to Make the Most of Your Next Crucial Few Years
Healthcare is a part of retirement that scares a lot of people. One of the best tools for that is the triple tax advantaged HSA. Once you hit 55, you can put in an extra $1,000 a year on top of the regular limit. In 2026, that means up to $5,400 for individual coverage or $9,750 if you have family coverage. And yet, most people don’t use HSAs this way.
High Earners Lose $1,900 in 401(k) Tax Breaks: The HSA Strategy That Replaces It
Under SECURE 2.0, workers 50 and older who earned more than $150,000 in 2025 W-2 wages must now route every dollar of catch-up money into a Roth 401(k). At a 24% marginal rate, a $9,750 family-plus-catch-up HSA contribution generates roughly $2,340 in federal tax savings. That is more than the deduction the 62-year-old just lost on the super catch-up, and it stacks on top of the standard $24,500 deferral.
Consumer-Driven Healthcare
14 Surprising Things You Can Buy With an HSA or FSA
If you’re familiar with FSAs and HSAs, you probably know you can use the money for deductibles and copayments. But here are more than a dozen eligible expenses that might surprise you. Unlike FSAs, HSAs don't have a "use it or lose it" rule, and knowing what eligible expenses are might convince you to contribute more to your HSA.