The following is a post by Deborah Gill, CPA, FSDA, that was originally shared on SDA's private forum, Social Link.

Nine Facts about HSAs that might surprise you

I've always thought and tried to educate employees on the benefits for an HSA far beyond paying for current medical expenses tax free.  I finally found an article that enumerates the benefits very clearly.

"Health savings accounts (HSAs) are projected to surpass $100 billion in assets in 2023, showing that consumers are realizing the potential power of HSAs, including as a significant wealth-building tool (there were nearly 34 million accounts in June 2022, according to research by HSA investment company Devenir). The fact that the HSA individual contribution limit is lower than that for deductible contributions to an individual retirement account (IRA) has led to HSAs often being overlooked in financial planning.

However, when best practices are used over the decades of a typical working person's career, a sizable balance can be accumulated. Pair that with health care expenses as the biggest unknown in most retirees' financial plans, and having a pot of tax-free money set aside specifically to cover those expenses can make tax and withdrawal planning in retirement much simpler." 

Current law prohibits HSA contributions when any other coverage is in place, including Medicare, so individuals must take advantage while they are currently working. That is why firm controllers and HR managers should make a concerted effort to work with employees to educate them about the best uses of this tax-savings powerhouse.  

Here are nine facts about HSAs that many account holders don't know but are key to making the most of this important retirement planning tool. The full article can be found here. You will want to read the whole article.

https://www.journalofaccountancy.com/news/2023/jan/9-facts-hsa-that-might-surprise-your-clients.html?utm_source=mnl:fpd&utm_medium=email&utm_campaign=31Jan2023 

1. HSAs are fully portable at any time.

2. Trustee-to-trustee transfer and rollover rules are similar to those for IRAs.

3. Account holders can make a one-tim IRA-to-HSA rollover.

4. There is no time limit on HSA reimbursements

5. All future expenses are eligible, regardless of enrollment when incurred.

6.  Other coverage, including spousal FSA, negates the ability to contribute to an HSA

7. HSAs can be used to pay certain insurance premiums.

8. HSAs are not subject to probate.

9.  HSAs are taxable to anyone beside a spouse who inherits them.

SDA is committed to encouraging and supporting personal growth, and professional development of individuals working in the AEC Industry. One way SDA delivers on this commitment is offering the CDFA credential. Reaching CDFA status includes passing an exam that covers five core areas of the AEC Industry business: project management, marketing, finance, office administration and human resources.  SDA's Certification Committee works diligently to provide study materials and resources that will aid in preparing for the exam. However, it still takes commitment and effort on the part of each individual. To acknowledge those who have reached CDFA status, and to inspire others to follow in their footsteps, the Certification Committee is pleased to spotlight these accomplished individuals.

Spotlight: Lisa Morris, CDFA You Are Worth It!

What motivated you to earn your CDFA certification?

I wanted to grow in my career and having certification shows that this is more than just a job to me.

Did you have any concerns, or fears, about taking the exam?

I was nervous, as I haven't taken a test for many years! The support from the study group and weekly practice really helped me feel confident.

What study tools did you find most useful?

I found all of the tools helpful! Flash cards were a huge help! Meeting weekly with the study group was helpful as well.

Did you learn anything new, or surprising, while preparing for the exam?

I did learn that we are all not that different. Much of what we covered was very familiar.

What section of the exam was the most difficult for you?

Human Resources and Insurance Coverage. This is something I really don't get involved with at my firm, so I wasn't as familiar.

What role, if any, has your CDFA played in advancing your professional or personal development, growth, network, or career? 

I was recognized at my company as being career minded. I even got a raise!

Was your employer supportive of your CDFA goals and accomplishments?

They were absolutely supportive! They allowed time for me to studying and were very encouraging.

What is your top tip to someone considering the pursuit of a CDFA designation?

Don't give up!! Get involved with a study group and make those flashcards. You are worth it!

What has obtaining your CDFA meant to you?

I feel accomplished and know that this is my career. I am invested in continually learning and growing.