PLANADVISER - May/June 2021 - 8

data points //
Investing With HSAs
To save for health expenses in retirement can be accelerated
M
ost Americans know that
medical care is expensive; 80%
of respondents to a recent RBC
Wealth Management survey reported
being worried about how they will
finance those costs in retirement.
If used successfully, health savings
accounts (HSAs) can help assuage some
of those concerns. Besides their triple
tax advantages-contributions, profits
on investments, and withdrawals used
for qualified medical expenses are all
tax free-HSAs enable other benefits,
says Roy Ramthun, founder and president
of HSA Consulting Services LLC.
" Lower premiums help fund HSAs; in
general, a high-deductible health plan
[HDHP-required to offer HSAs-]tends
to bring your premiums down, and that
money is then available to help you
fund your HSA, " he says.
Still, there is room to grow in
providing access to the accounts: Only
45% of employers responding to the
2020 PLANSPONSOR Defined Contribution
(DC) Survey have an HSA option.
Expansion of adoption will require
more than adding an HDHP to the
open enrollment menu-it also means
watching participant enrollment. About
50% of employers saw just 50% adoption
of HDHPs when these were offered
as a health plan choice, according to the
PLANSPONSOR DC Survey.
Of the employers that offer HDHPs,
about 50% default employees into an
HSA, the DC Survey also found. The
remaining employees may or may
not initiate opening an account. Plan
advisers, who are used to talking about
engagement and enrollment with plan
sponsors, might help clients consider
targeting HSA enrollment.
Then participants must invest
those assets if they want to maximize
them for retirement. The 2021
PLANSPONSOR HSA Survey found
that roughly 7% of HSAs leverage
investment options, with the average
balance being $11,740-a start, with
lots of runway. -Judy Faust Hartnett
Employers That Offer HSAs, by DC Plan Asset Size
Overall
<$1mm
$5mm - $10mm
$25mm - $50mm
$100mm - $200mm
$500mm - $1b
49%
23%
39%
50%
60%
75%
% of Respondents With Employees in an HDHP
≥90% of employees
9%
≥75% - <90% of employees
≥50% - <75% of employees
≥25% - <50% of employees
10% - <25% of employees
<10% of employees
Unsure / Don't know
11%
23%
26%
11%
15%
4%
% of Employees in an HDHP Who Have Opened an HSA
≥90%
≥75% - <90%
≥50% - <75%
≥25% - <50%
10% - <25%
<10%
Unsure / Don't know
37%
23%
17%
8%
4%
3%
10%
Source: 2020 PLANSPONSOR Defined Contribution Survey
Employers Offering HSAs That Allow for Investing
Offer
Don't offer
Unsure / Don't know
79%
12%
9%
Source: 2021 PLANSPONSOR Health Savings Account Survey
8 | planadviser.com May-June 2021

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PLANADVISER - May/June 2021

Table of Contents for the Digital Edition of PLANADVISER - May/June 2021

Publisher’s Note
Compliance News
Data Points
Trends
Eyes On The Investment Menu
2021 PLANADVISER DCIO Survey: The State Of DCIO
The Promise Of Sustainable Investing
Wealth Transfers On The Horizon
Rollovers And Fiduciaries
Caution Needed Regarding Rollovers
Advisers Giving Back
PLANADVISER - May/June 2021 - Cover1
PLANADVISER - May/June 2021 - Cover2
PLANADVISER - May/June 2021 - 1
PLANADVISER - May/June 2021 - Publisher’s Note
PLANADVISER - May/June 2021 - 3
PLANADVISER - May/June 2021 - Compliance News
PLANADVISER - May/June 2021 - 5
PLANADVISER - May/June 2021 - 6
PLANADVISER - May/June 2021 - 7
PLANADVISER - May/June 2021 - Data Points
PLANADVISER - May/June 2021 - 9
PLANADVISER - May/June 2021 - Trends
PLANADVISER - May/June 2021 - 11
PLANADVISER - May/June 2021 - 12
PLANADVISER - May/June 2021 - 13
PLANADVISER - May/June 2021 - 14
PLANADVISER - May/June 2021 - 15
PLANADVISER - May/June 2021 - 16
PLANADVISER - May/June 2021 - 17
PLANADVISER - May/June 2021 - Eyes On The Investment Menu
PLANADVISER - May/June 2021 - 19
PLANADVISER - May/June 2021 - 20
PLANADVISER - May/June 2021 - 21
PLANADVISER - May/June 2021 - 22
PLANADVISER - May/June 2021 - 23
PLANADVISER - May/June 2021 - 24
PLANADVISER - May/June 2021 - 25
PLANADVISER - May/June 2021 - 2021 PLANADVISER DCIO Survey: The State Of DCIO
PLANADVISER - May/June 2021 - 27
PLANADVISER - May/June 2021 - 28
PLANADVISER - May/June 2021 - 29
PLANADVISER - May/June 2021 - 30
PLANADVISER - May/June 2021 - 31
PLANADVISER - May/June 2021 - 32
PLANADVISER - May/June 2021 - 33
PLANADVISER - May/June 2021 - The Promise Of Sustainable Investing
PLANADVISER - May/June 2021 - 35
PLANADVISER - May/June 2021 - Wealth Transfers On The Horizon
PLANADVISER - May/June 2021 - 37
PLANADVISER - May/June 2021 - Rollovers And Fiduciaries
PLANADVISER - May/June 2021 - Caution Needed Regarding Rollovers
PLANADVISER - May/June 2021 - Advisers Giving Back
PLANADVISER - May/June 2021 - Cover3
PLANADVISER - May/June 2021 - Cover4
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https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
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