What is the HSA “Catch-Up” Contribution?

Getting older does have its benefits! Did you know if you are 55 years of age or older you are eligible to contribute even MORE to your health savings account (HSA)? 

The catch-up is an additional $1,000 that you can contribute to your HSA once you reach age 55, increasing not only your HSA balance, but your tax savings as well. 

An HSA owner becomes eligible to contribute the full $1,000 catch-up amount within the year they turn age 55. It doesn’t matter if your birthday is on January 1st or December 31st the full amount is allowed. The HSA catch-up is allowed each year until you reach age 65 or are enrolled in Medicare benefits. 

In addition, if you and your spouse are both over the age of 55, each of you may contribute the additional $1,000 catch-up amount. In order for this to occur, the catch-up will need to be done in separate health savings accounts established in the name of each spouse. It is not compliant to contribute the catch up amount to an HSA account that is not in the participant’s (account owner’s) name. 

If you would like to learn more about health savings accounts (HSA) or catch-up contributions please visit us at www.abgaccess.com.

Thank you and have a wonderful day!

The Author: Stacie Ravenhorst, CFC

Implementation Specialist

abgncs.com/hsafsahra

sravenhorst@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.

Becoming Familiar with the Retirement Website

Have you taken time to explore our retirement website? Here are some key areas to become familiar with the next time you log in.

Managing your account
Take some time to become familiar with the site and understand where your money is invested.

• This tab has resources that allow you to view your current account balance within each investment fund or shown within each source.
• You can also transfer your current funds into new investments, choose to increase your future contribution amount and change your future allocations.
• If you chose to “Invest New Money”, be sure to note the box to change your current balance to match your new elections, if you wish.
• Within the Transfer Funds section, you can click on the funds to read the most up to date fund information provided by Morningstar.

Statements & Requests

Under this section access to your statements is at your fingertips. You can request a statement at anytime. 

• Choose how you want to view your account, then the time period and your statement will appear.
• You can also view recent transactions on your retirement account such as your contributions, employer contributions to your account, or dividends earned.

Profile

Keeping all of your personal information up to date is helpful to you and us. It’s a good idea to include your current email address so you can receive timely communications.

• Update your personal info anytime.
• You can change address, phone number, email address, and marital status anytime.
• You can also update your beneficiaries without filling out any paperwork!
• If you want to change your user ID and password, this would be the place to do it. 

Resources

This tab offers a range of high level and detailed information to help you better understand your retirement and make the most of your plan.

• Here you’ll find important messages about your plan, current fee disclosure and the highlights of your plan document.
• You can also find transfer rollover forms, loan forms, and distribution forms.
• Another great resource is the Retirement Calculator. This calculator will estimate your income and savings that you will have when you retire. The results will identify if your current savings will last through your retirement years and give you a cash flow of what your estimated balance will be for each year.

Become familiar with the retirement plan website to make the most of the retirement planning experience. Having a strong grasp of how your retirement is shaping up can help put your mind at ease. Login to the retirement site at www.abgncs.com to start exploring and using the resources available to you.

The Author: Kasey Wolters

Client Support Associate

abgncs.com

kwolters@abg-mn.com