How FSAs and HSAs Ease the Pain of Healthcare Costs
The fall open enrollment season isn’t just about choosing the best health insurance plan for the coming year. It’s also the time when you may have the option of enrolling in an FSA or HSA. Both allow you to set aside tax-free dollars to cover out-of-pocket costs. They provide valuable tax savings that can soften the blow of healthcare spending. Here’s how to decode the jargon to understand how these tax-advantaged plans can save you money on healthcare costs.
With life expectancy stretching into the 90s for many, funding a health savings account to supplement your other retirement savings makes a lot of sense. Rapidly rising health care costs are making it increasingly difficult for people to afford to retire. So if you’re not familiar with how an HSA works, it’s time you learn more about one of the most powerful savings and retirement planning tools around.
In addition to its other advantages, an HSA is a good retirement savings option, especially for high-income earners who can’t make deductible contributions to a traditional IRA or any contributions to a Roth IRA. As with any investment, pay careful attention to risk. One investment strategy that works well for an HSA is a three-bucket strategy. Each bucket has a different risk level for different time frames.
Over time, companies have passed more and more of the burden of coverage over to employees. Today, workers pay 78 percent more in annual premium contributions than a decade ago, in part due to the rise in popularity of high-deductible health plans. If you’re stuck with a high-deductible health plan, here are 8 ways you can save.
Got a Fiduciary Rule Question? DoL to Issue FAQs Soon
Advisers perplexed by the ins and outs of the Department of Labor’s new regulation may soon get a road map, according to an agency official. The department will be issuing FAQs for advisers and wealth management firms this fall at an unspecified date, and will continue to do so on an ongoing basis, says Timothy Hauser, one of the agency's deputy assistant secretaries.