HSA News for August 24, 2026
HSA Studies & Analysis
HSAs Reach Record Balances, Low Levels of Investments
A new report by the Employee Benefit Research Instituted showed the average HSA balance was $5,532 in 2024—the highest level on record—up from $4,747 in 2023. However, more than half (56%) of account holders took distributions, and only 18% of account holders invested in assets other than cash, according to the report.
Devenir-HSA Council Demographic Survey Sheds Light on Who Owns HSAs
The recently released HSA Council Demographic Survey by Devenir study is largely reflective of the company's previous surveys. What it shows is that HSAs are growing in popularity among younger workers across the income spectrum. These trends will help more hard-working families manage their cost of medical care today and in the future.
Compliance Corner
Part 1: Switched Out of an HSA-Qualified Plan? Here's Your 2026 Contribution Limit.
When you are not HSA-eligible all 12 months of a calendar year, you may have to adjust your contributions to less than the statutory limit. When you lose eligibility mid-year, your contribution for the calendar year cannot exceed the applicable prorated statutory maximum. If you gain eligibility to contribute mid-year, you have the option to prorate.
Suits Accuse Employers of Bad Math on Health Deductible Options
A spate of proposed class actions accuse employers of violating their fiduciary duties by offering low-deductible health plans that plaintiffs claim are a worse financial deal than the high-deductible options. The separate lawsuits argue employers should have warned participants the low-deductible plan was a worse option.
Market Trends
Employer Health Costs Projected to Rise 9.5 Percent
A new analysis from Aon projects that employer health costs in the U.S. will rise by 9.5 percent in 2027. This would mark the fourth consecutive year of near double digit increases, meaning spending an added $19,000 per employee on average, unless employers implement cost-saving changes or programs to mitigate expected higher costs.
Younger Adults Favor Self-Directed Financial Guidance Over Advisers, per Edward Jones
As younger generation savers are naturally accustomed to finding financial information online, most are turning to internet research, rather than financial advisers, for guidance. According to a new study, 73% of all U.S. surveyed adults used online research as a source for financial guidance, compared with 32% who went to a financial adviser.
HSAs & Retirement
Health Savings Account Strategy: How to Turn Your 401(k) Into a Tax-Free Retirement Machine
The HSA is the only account offering deductible contributions, tax-free growth, and tax-free medical withdrawals, which is a triple advantage that no 401(k) can match. HSA medical reimbursements don't count toward IRMAA thresholds, letting couples reduce 401(k) draws and dodge Medicare surcharges reaching $440 per person monthly.
HSA vs. 401k vs. IRA: How Do These Retirement Accounts Stack Up
The average 65-year-old couple retiring today will need $395,000 to cover healthcare and medical costs in retirement. And even though Medicare helps pay for healthcare needs, most recipients still spend thousands each year on out-of-pocket expenses. here is a breakdown of three common retirement accounts: an HSA vs. a 401(k) vs. an IRA.
The $200,000 Cushion: How One Number Can Ease One of Retirees' Biggest Worries
As you decide how much money you need to retire, the thought of saving for one more thing may seem overwhelming. However, imagine moving into retirement without worrying about how your medical expenses will be paid. If you're not quite sure how you can make it work, these 3 ideas can help get you started. HSAs offer 3 distinct tax advantages.
Maximizing Your HSA
HSA Balances Are Growing—But Most Americans Are Still Missing Out on the Biggest Advantage
HSA balances have hit a record high, but most account holders still keep money in cash instead of investing it, according to a new report. That could be a costly missed opportunity, especially with retirement health care expenses potentially reaching six figures. You don’t have to choose between spending and investing—keeping enough cash for near-term needs can leave the rest free to grow.
Retirees Can Pay Medicare Premiums From an HSA, Tax-Free. The Average One Pays From Checking.
Retirees in the 22% tax bracket save roughly $500 a year by paying the monthly $203 Medicare Part B premium from an HSA instead of a taxable IRA withdrawal. A $203 monthly IRA withdrawal to cover Part B can require pulling $260 before tax, while an HSA delivers the exact premium amount completely tax-free.
Beyond the One Big Beautiful Bill Act: What’s Next for HSAs and Employee Benefits
The One Big Beautiful Bill Act, which expanded access to HSAs and the ways employers can pair them with other benefits, continues to shape the employee benefits world. In a recent podcast, WEX SVP Chris Byrd shared his insights on what has changed since the legislation passed and the trends employers should watch as they plan for the future.