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New Health Savings Account, HDHP limits for 2020

August 13, 2019 at 7:59 pm

The IRS has announced new health savings account contribution maximums for the 2020 health insurance plan year.

Employees who have an HSA linked to a high-deductible health plan (HDHP) will be able to contribute to their HSA up to a certain level to help pay for health care and pharmaceutical expenses.

Funds going into your employees’ HSA accounts are deducted before taxes during each paycheck and the balance can be carried over from year to year.

Many HSAs also allow employees to invest the funds like they would with a 401(k). Because of this, HSAs have become a savings vehicle of sorts for people who are saving for health care expenses they are expecting in retirement.

HSAs can only be offered with an attached HDHP.

If you as an employer also contribute or partially match your employees’ contributions, they benefit even more, especially when compounding investment returns build up in the long term.

The IRS adjusts contribution limits for HSAs yearly based on inflation. For 2020, those limits will be:

  • $3,550 for individual coverage under an attached HDHP (up $50 from 2019).
  • $7,100 for family coverage (up $100 from 2019).

Also, remember that individuals who are 55 or older can make an additional $1,000 in catch-up contributions.

Besides the contribution maximum increasing, the deductible requirement for an attached HDHP will also climb for 2020:

  • For individual HDHPs, the deductible amount must be between $1,400 and $6,900. That’s compared with $1,350 and $6,750 in 2019.
  • For families, the range is $2,800 to $13,800. That’s up from $2,700 and $13,600 in 2019.

Long-term benefits

One of the best benefits from an HSA is the long-term advantage of being able to carry over balances year after year and let it build up for medical expenses in retirement. But, one of the key points that your employees should know is that if they use the funds in their HSAs for purposes other than qualified medical expenses, they have to pay a 20% penalty.

The website Investopedia recommends that your employees:

  • Max out their HSA contribution each year. If they do so, the amount they can save over the long term only grows through compounding.
  • Hold off on spending contributions now, and try to not use HSA funds for current medical expenses.
  • Make sure they only use the money for qualified medical expenses, so they don’t have to pay penalties of 20% plus regular income tax on their withdrawals.
  • Invest contributions for the long run. For example, if you’re currently invested in a mix of 80% stocks and 20% bonds, you should probably invest your HSA that way, too.
  • Use the account once they’re 65 or older. An added benefit to waiting until you’re at least 65 to spend your HSA balance is that the 20% penalty for withdrawing funds for purposes other than qualified medical expenses doesn’t apply. But, you will have to pay income tax if you don’t use the funds for qualified medical expenses.

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Omer Omer Honored as the 2018/2019 Boys Soccer Team Character Counts Award Recipient

May 24, 2019 at 3:29 pm

Omer Omer was honored as the Boys Soccer Team Character Counts Award Recipient during the teams annual banquet held May 22, 2019 in Pawleys Island, SC.  Omer was honored for displaying great responsibility for his team as well as caring deeply about all of his teammates.  The Georgetown High School boys soccer team coach, Chris Hapeshis commented stating “Omer displays great servant leadership as he was willing to play whatever position our team needed him to play during the season”.  Coach Hapeshis also stated that Omer was a pleasure to coach.

The award was presented by Allen E. Altman, Strovis Insurance President and Jillian Sanchez, Strovis Payroll Operations Director.

The Strovis Character Counts program honors student-athletes who excel in their chosen sport, as well as in life. Students who hold strong character traits are selected for the award. They are nominated by members of the coaching staff.

Strovis partnered with the Georgetown High School Bulldogs Athletic Booster Club to create the awards program in the fall of 2017. The Booster Club remains a co-sponsor for the 2018-2019 school year.

Founded in Georgetown in 1998, Strovis Holdings oversees three divisions of the company: Strovis Payroll & HR, Strovis Benefits and Strovis Insurance. The company serves clients in 32 states from South Carolina.

 

Categories: Compliment Character Award.

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