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A summary of the articles included in the November 2017 edition:
- HSA Investing: 3 Reasons Investing in an HSA is Not the Same as a 401(k) – Part 1
- Harness the Power of a Health Savings Account
- 7 Great Reasons Why an HSA Is a Good Financial Move
- Triple Your Tax Breaks With This Health Savings Account
- 10 Reasons HSA Is The New IRA
- PANC 2017: The Role of HSAs
- WageWorks Acquires Tango Health’s Health Savings Account Business
- The Benefits (and the Catch) of Health Savings Accounts
HSA Investing: 3 Reasons Investing in an HSA is Not the Same as a 401(k) – Part 1
The HSA market has grown rapidly since its inception in 2004, garnering comparisons to the early 401(k) market which has exceeded $5 trillion in assets according to the Investment Company Institute. In the most recent 2017 Midyear Devenir HSA Research Report we provide guidance that growth in the HSA market is unlikely to slow any time soon. As part of our continuing effort to inform investors about HSAs, we will be posting a three-part blog series comparing HSAs to 401(k)s for use as a retirement savings vehicle. While the two accounts are often compared at a high level, we take an in-depth look at the benefits and limitations of each account highlighting three reasons investing in an HSA is more nuanced than it’s 401(k) counter-part.
Harness the Power of a Health Savings Account
HSAs are the only long-term savings account that is triple tax advantaged, meaning account holders can take a tax deduction on their contributions, earnings are tax free, and withdrawals for qualifying medical expenses are tax free as well. However, most HSA account holders aren’t maximizing the advantages of their HSA.
7 Great Reasons Why an HSA Is a Good Financial Move
- The contributions you make to your HSA are pre-tax, (aka tax-free)
- The funds in your account roll over from one year to the next
- Any interest you earn within your HSA is also tax free
- Money invested inside your HSA also grows untaxed
- Once you reach age 65, withdrawal penalties disappear
- You can use money in your HSA to pay for long-term care
- HSAs are arguably the best retirement vehicle out there
10 Reasons HSA Is The New IRA
- Contributions are tax deductible
- Growth is tax free
- Withdrawing funds for qualified expenses is tax free
- You will use it
- You never lose it
- Investment options are great
- High earners can use it too
- Your insurance is cheaper
- You can “own” your healthcare
- Hold less cash, invest more
PANC 2017: The Role of HSAs
HSAs are being promoted as a way to save for future medical expenses, not just pay for current costs. In fact Kenneth Forsythe, AVP, product strategy, at Empower Retirement said Empower positions HSAs as “no better vehicle for saving for medical expenses in retirement, period.”
WageWorks Acquires Tango Health’s Health Savings Account Business
WageWorks, Inc. announced it has acquired Tango Health’s Health Savings Account (HSA) business. The transaction seeks to strengthen WageWorks’ HSA product offering and its leadership position in the Consumer-Directed Benefits market.