Compliance May 24, 2010

HSA Limits Stay the Same for 2011

The Internal Revenue Service (IRS) has announced that 2011 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under §223 of the Internal Revenue Code are unchanged from the amounts for 2010.
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According to Revenue Procedure 2010-22, the limits are the same because, after the application of the cost-of-living adjustment rules of § 223(g) (including the rounding rule of § 223(g)(2)), the changes in the Consumer Price Index for the relevant period do not result in changes to the amounts for 2011. 

For calendar year 2011, the annual limitation on deductions under §223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,050. For calendar year 2011, the annual limitation on deductions under §223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,150. 

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For calendar year 2011, a “high deductible health plan” is defined under §223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 for self-only coverage or $2,400 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,950 for self-only coverage or $11,900 for family coverage. 

The Markets May 24, 2010

Investors Most Prize Rate of Return on Statements

DALBAR, Inc. has released its national study of what investors expect to see in a statement from financial services companies.
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DALBAR’s Investor Statement Preferences study found the overall rate of return in the account is the single most important statement item, with more than half of respondents ranking it as critically important. Total fees charged was the second highest rated item investors want on their statements, according to a press release.

More than half of investors consider statement messages from their financial adviser to be important. Investors also say that sections that summarize statement details are also critical to their understanding.

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“Declining trust in financial services has pushed up demand for fee disclosure,” said Kathleen Whalen, Managing Director at DALBAR,. “It’s clear that investors want to know what benefits they receive in the form of returns and what these benefits are costing them.”

DALBAR said the results of the study contribute to the weighting of its statement rating criteria, which are used to evaluate individual investment and benefit statements. 

A copy of the study can be purchased at www.dalbar.com, or  by contacting Brooke Halloran at 617-624-7273 or bhalloran@dalbar.com.

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