Living Well

Podcast-Eligible: Our Shoppers Reveal Their Sunscreen Habits

It's summer! Naturally instead of taking vacations, we worked even more! We took a recent poll and asked our shoppers about their sunscreen preferences and here are the results. Oh, and Kevin's back (kind of).

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Also, don't forget our Sun Care Center, which gives you a complete overview of how to tackle the season's biggest sun care questions. And as always, for all things flex spending, be sure to check out the rest of our Learning Center, and follow us on Facebook, Instagram and Twitter.

Accounts

The 2020 HSA contribution limits are here!

In what has become a small holiday around here, mid-to-late May means warmer weather, long weekends and the announcement of the following year's HSA contribution limits. And as you've probably guessed, we're not really good at discussing hot dogs.

On May 28, 2019, the IRS released Revenue Procedure 2019-25 its annual update, which explains the 2020 inflation-adjusted amounts for high deductible health plans (HDHPs)

As expected, incremental increases were applied to self-only and family coverage, right in line with the last few years' worth of adjustments (typically a $50 increase for self-only coverage, and $100 for family coverage).

The HSA contribution limits for 2020 (as compared to this year) are as follows:


2019

Rev. Proc.
2018-30

2020

Rev. Proc.
2019-25

Annual limitation on deductions to an HSA – self-only coverage

$3,500

$3,550

Annual limitation on deductions to an HSA – family coverage

$7,000

$7,100

HDHP – self-only

  • Annual deductible not less than:
  • Annual out-of-pocket expenses
    do not exceed:


$1,350

$6,750


$1,400

$6,900


HDHP – family

  • Annual deductible not less than:
  • Annual out-of-pocket expenses
    do not exceed:


$2,700

$13,500


$2,800

$13,800


Remember! If you're 55 or older, you can contribute an additional $1,000 per year to the above totals as a catch-up contribution. This amount is unchanged from the previous year.

Basics

[WATCH] What's an HSA letter of medical necessity?

In short, an LMN is like a doctor's note. Having an LMN can help you get HSA reimbursement for any product or service that falls outside the IRS definition of "medical care" (but can assist the treatment of a condition).

In other words -- LMNs can be really helpful in getting you the products and services you need with your tax-free funds, without having to try and explain it in a reimbursement claim after the fact. But why explain it in text when our team does it way better in our latest video?

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And for a closer look at LMNs, along with a healthy dose of everything flex spending, check out the rest of our Learning Center!

Basics

[WATCH] What's a Qualifying Life Event (QLE)?

It doesn't take a wizard to make changes to your health coverage -- but you'll need a qualifying life event! In our latest video , we take a quick look at QLEs, and how they can help you adjust your benefits to better meet your needs.

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For more videos from HSAstore.com, be sure to subscribe to our YouTube channel! And for even more magic, definitely check out the HSAstore.com Learning Center and follow us on Facebook and Twitter. It's health savings. Simplified.

Balancing savings and healthcare spending in 2019

You might still be accidentally writing "2018" on your personal checks, but it's never too early to plan out your approach to your HSA saving and spending for all of 2019. No, really… we're not kidding.

Whether you're a long-time HSA user, or recently signed up for an HSA-qualified HDHP during your last open enrollment, there's just as much planning to prepare. Let's take a minute to make sure your spending and saving is on track.

A lot of people enroll in an HDHP, enjoy the lower premiums, but forget all about the spending and saving perks of the HSA! If you have an HDHP and haven't taken advantage of the HSA, you're missing out on some pretty significant benefits. Now's a good time to avoid the trap and make the most of these tax-free funds. Let's start with the savings.

Hitting those contribution goals

Maybe you opened an account at the beginning of the year, planning to make regular contributions. But if you didn't automate those contributions, or they're not automatically taken from your pay, you may have forgotten all about them.

Life gets in the way, and there are always other bills to pay! This is a good checkpoint to see how much you've contributed, and where you might need to make changes to get the most from your tax-free account.

If you have HDHP coverage just for yourself, you can put up to $3,500 into your HSA this year. If your HDHP also covers at least one other family member, you can contribute up to $7,000. The contributions are tax-free, and the money will grow in your account — also tax-free — until you need it.

It's in your best interest to contribute as much as possible to your HSA, so if you haven't contributed at least half of what you wanted to contribute this year, make a plan to manage your contributions for the second half of the year to make sure that by the time December rolls around, you've met (or at least come close to) your contribution goal for 2019.

Are you tracking your healthcare spending?

Whether you're using your HSA debit card or online bill pay system, reimbursing yourself each time you have a medical expense, or waiting to reimburse yourself at some point in the future, it's your responsibility to keep track of your receipts.

You'll need them if you're ever audited by the IRS, so that you can prove that the money you withdrew from your HSA was used for qualified medical expenses (including pharmacy products that can be purchased with tax-free HSA funds).

You'll also need to be able to prove that you didn't already deduct the medical expense on your tax return, and that nobody else reimbursed you, since you can't double-dip when it comes to tax benefits.

Usually, you're advised to keep tax records for the previous seven years. But if you're using your HSA as a long-term investment, you might be using non-HSA funds to pay for medical care at a later date. But if you want to save up those tax-free funds for months, years or even decades, you'll need to keep all of your receipts that whole time as well.

Since sorting through a dusty shoebox crammed with wrinkled healthcare receipts from 27 years ago isn't a great way to spend a day, now's a good time to take a hard look at how you're organizing and storing your medical receipts.

Our advice? Keep it simple and make a spreadsheet to go along with your receipts. You can also keep digital scans of your receipts, upload pictures of them to the cloud -- basically anything other than relying on that shoebox. In the end, you just want to track the following:

  • All medical expenses you've made since you opened your HSA
  • How much you've reimbursed yourself from the HSA
  • How much is still eligible to be reimbursed at a later date.

Trust us, you'll thank yourself later. Enjoy the second half of the year, knowing you've got your HSA in order!

And as always, the information we provide does not and should not be considered legal or tax advice. In all cases with your HSA, we advise that you speak with a legal or tax professional to ensure that you have everything properly in order.