A qualified HSA funding distribution allows HSA owners to directly move their Traditional or Roth IRA assets to their HSA as a regular contribution. Qualified HSA funding distributions are not deductible, however, and cannot be treated as a prior-year contribution.
Read MoreThe IRS announced that the filing deadline for 2021 tax returns or requests for extension is April 18, 2022, for most taxpayers.
Read MoreIn early January, the IRS issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in Colorado. The IRS also issued a news release in mid-January announcing the postponement of certain tax-related deadlines for victims of flooding and mudslides in Washington.
Read MoreFinancial organizations that administer IRAs, health savings accounts (HSAs), and Coverdell education savings accounts (ESA) have many reporting deadlines looming ahead in 2022. Here’s a rundown of the impending due dates in the first quarter.
Read MoreAs benefits enrollment season fast approaches, you may see an increase in new clients looking to set up HSAs. Now may be a perfect time for you and your staff members to brush up on your HSA knowledge, especially when it comes to understanding HSA eligibility.
Read MoreIf you have clients who own an HSA, they may have questions about using their HSA money to pay or reimburse themselves for medical expenses that they’ve incurred. Do they understand the tax advantages—and any tax consequences—of HSA distributions? Educating your clients about HSA distributions can help them get the most from their HSA savings.
Read MoreWith multiple tax-advantaged savings options available, your clients may often wonder where to defer their money when saving for the future. Sure, there’s the 401(k) plan and the IRA, but they shouldn’t forget about the HSA. For clients who have access to all of those, they may need to prioritize where they save to ensure that they get the most from their dollars.
Read MoreIf your organization allows the use checks or debit cards to withdraw HSA assets, it risks extending credit to the HSA owner, which is a prohibited transaction. Adopting certain policies and procedures may help prevent that from happening, along with the negative tax consequences.
Read MoreWhat is the maximum amount an unmarried couple with family HDHP coverage can contribute to their HSAs? Can a child listed as a dependent for HDHP coverage purposes but not claimed as a tax dependent still use HSA assets to pay medical expenses? How does divorce affect the HSA contribution limit?
Read MoreThe IRS officially extended the deadline for individuals to file their federal tax returns and make IRA, HSA, and ESA contributions with Notice 2021-21. This notice also gives financial organizations until June 30, 2021, to file and furnish Form 5498 series forms.
Read MoreAn employer generally cannot recoup contributions it made to an employee’s HSA. But there are certain circumstances in which the IRS does allow an employer to recoup, or recover, contributions.
Read MoreFind out when it’s okay and when it’s not okay to accept prior-year contributions that are mailed to your organization or deposited through an ACH payment after the contribution deadline.
Read MoreIf your financial organization administers IRAs or HSAs, it’s responsible for reporting the contributions made to these accounts to account owners and to the IRS annually by May 31. Find out how to complete this type of reporting on Forms 5498 and 5498-SA.
Read MoreAlthough your organization may not be equipped to provide individualized financial advice, you can share general information about the advantages and disadvantages of three common tax-advantaged savings accounts.
Read MoreWhat 2021 will bring is yet to be determined. There is optimism, however, that one or more retirement or health savings-focused bills could be enacted in 2021. Several that were introduced during the past two years will likely be re-introduced in the 117th Congress.
Read MoreIRA, retirement plan, and HSA distributions must be reported to account owners and to the IRS by January 31. Follow these charts to be sure that the required distribution information is being entered correctly.
Read MoreAs 2020 draws to a close, you may want to remind your HSA owners that they don’t have to take a use-it-or-lose-it approach with their HSAs. Assets may be used for qualified medical expenses in subsequent years—or not used at all, continuing to grow into retirement.
Read MoreCan HSA owners repay mistaken distributions from their HSAs? When HSA owners use their HSA assets for nonqualified expenses, are those considered mistaken distributions? What options do they have for correcting these?
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