PLANADVISER Weekend Newsdash
Week ending January 18th, 2019

Happy Friday, readers! Surveys suggest more than 80% of employees see medical costs as being among their biggest financial challenges now and in the future. Yet only 25% rank contributing to a health savings account (HSA) as a top current financial priority, falling below saving for retirement in a 401(k), paying for essential day-to-day expenses and paying off debt. An increasing number of advisers and providers are working to address this discrepancy and to promote the use of HSAs as investment vehicles for anticipated retirement needs, seeing such accounts as a natural counterpart to the 401(k). Below, you will find a series of helpful articles detailing the rapidly shifting HSA landscape, with a focus on what role DC plan advisers can play. 

Editor's choice
R6 Shares in HSAs Are Just the Beginning
Advisers and providers in the defined contribution plan arena want to take a bite out of banks’ dominance in the health savings account marketplace, and they are building solutions to make it happen. Read more >
Investing HSA Assets Helps Savings Grow
Devenir estimates that $9.8 billion of HSA assets are invested as of June 30, 2018—an estimated 45% year-over-year increase. Read more >
Education and Better Investments Needed to Propel HSAs to Retirement Savings Vehicles
The frequency of withdrawals prevents HSA account holders from building a meaningful balance to use for health care expenses in retirement, and individuals are unlikely to allocate their assets to investment products if their primary goal is to fund short-term medical expenses, Cerulli says. Read more >
Beyond(k): HSAs, Pension Risk Transfer, Student Loan Debt Relief
A look at some of the products and services retirement plan sponsors are requesting outside of 401(k) plans. Read more >
Selecting the Optimal Investment Lineup for HSAs
Most HSAs do not even have an investment component, but this will change, as health care brokers have been driving plan sponsor adoption of HSAs, but in the future advisers will, Jamie Greenleaf, with Cafaro Greenleaf, told attendees of PLANSPONSOR’s 2018 HSA Conference. Read more >
Finding Money for Both HSAs and Retirement Plans Can Be a Challenge for Employees
Willis Towers Watson suggests portals integrated with financial planning tools can help employees make strategic decisions about where to best save their money based on their unique financial situation. Read more >
MOST POPULAR STORIES
Warn Your Clients: Don’t Abuse Coronavirus Hardship Withdrawals
Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover otherwise during a future audit, a participant can be subject to substantial penalties.
A New World and New Opportunities for Alpha
Pandemic-driven volatility has once again highlighted the relative virtues of active and passive management.
2020 Required Amendments List Published by IRS

The two items that may require an amendment relate to difficulty of care payments treated as compensation for 415 limits, and the application of cooperative and small employer charity pension plan rules.

OMB Has Received a Final Fiduciary Rule From DOL

The sense of déjà vu associated with the filing of a finalized fiduciary rule by the Department of Labor is palpable, but one ERISA expert says this version could actually stick—for good—despite the pending change in administration.

Financial Wellness Programs in Greater Demand During COVID-19

Prudential survey finds employees were looking for financial advice and emergency assistance.

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