Time Is Running Out to Simplify Saving for Retirement and Health Care

By ASPPA Net Staff • June 13, 2017 • 0 Comments
Concerns about retirement and health care loom large for American workers and the U.S. Senate is reportedly close to its version of a health care reform bill. We need your help ASAP to tell Congress to make it easier for workers to manage their health and retirement savings.

What’s the Issue?

The tax advantages of health savings accounts (HSAs) are making them increasingly popular: there are now more than 20 million such accounts, and four out of five HSAs were opened in just the past six years. At this very moment, Congress may be about to pass enhancements that would nearly double the amount of money workers are allowed to save tax-free in health savings accounts (HSAs).

Increasingly workers are setting aside money in these accounts for retirement health care expenses. However, at present HSAs are completely segregated from retirement savings accounts, and despite the potential for long-term investment, are often restricted to short-term, low-income instruments.

A Better Solution

We think there is a better way — building on the concept of the so-called “sidecar” IRA included in the Economic Growth and Tax Relief Reconciliation Act of 2001, we believe Congress should simplify retirement savings by allowing employers to offer access to the same investment options for HSAs alongside their 401(k), 403(b) or 457 plan accounts.

That would give workers access to the lower-cost investment options available to them in their retirement plans, as well as the benefits of holistic saving, spending, and investment advice to help them make more informed decisions. Plan administrators and advisors would be able to develop investment advice and education tools to integrate both accounts into an employee’s financial planning so that workers would see streamlined, consolidated statements that show both health and retirement savings.

It’s a true financial wellness solution!

Act Now!

The clock is ticking. Encourage your Senators to take action — at http://www.hsasidecar.org.