Latest news with #HSAs
CNBC
13 hours ago
- Business
- CNBC
Here's why the Republican tax bill could give a jolt to gym stocks
The tax and spending bill winding its way through Congress could end up delivering a gift for exercise buffs and a boost to the stock price of their favorite gyms. The bill that passed the House of Representatives last month included a provision that would expand the allowable uses for health savings accounts to include "qualified sports and fitness expenses." HSAs work alongside high-deductible health insurance plans, and they allow savers to put away pre-tax dollars and have them accumulate free of taxes. The money can be withdrawn tax free to cover qualified medical expenses. The bill calls for allowing the HSA funds to pay up to $500 per year for an individual, and $1,000 for a joint return or head of household filing. At least for now, the tax benefit seems like it would only be a direct boost for gym stocks rather than equipment and apparel makers. "There's a distinction between kind of the online, at home versus in-person, live" said Ed Mills, Washington policy analyst at Raymond James. The gym stocks that could theoretically benefit include Planet Fitness , Life Time Group and their smaller rival Xponential Fitness , which has a market cap of less than $450 million. Of these, Planet Fitness seems to be the one that Wall Street analysts are identifying as a beneficiary, in part because its cheaper membership plans could be covered entirely by the tax-free allowance. "The impact would likely be particularly helpful for PLNT, as its monthly fee is only $15/month for the Classic Card and $24.99 for the Black Card (though it is conducting a test at $29.99), while the typical XPOF member pays > $100/month," Raymond James leisure products analyst Joseph Altobello said in a note. Similarly, Stifel analyst Chris O'Cull said in a recent note that PLNT should capture "at least its fair share" of the benefit from the policy change with the potential for even more benefits if the tax benefit makes customers more willing to accept price increases or trade up to the Black Card plan. "There are several potential questions to consider beyond the 'all else equal' scenario. First, incremental membership growth would increase the benefit of higher Classic membership pricing and any future Black Card pricing actions. Second, the ability to reimburse gym membership costs tax-free essentially equates to a price decrease for consumers, which could reduce churn rates. Finally, there could also be an impact on Black Card penetration rates if consumers prove more willing to trade up with the reimbursement," O'Cull wrote. The Stifel analyst upgraded Planet Fitness to buy from hold in that note. According to LSEG, 16 of the 18 Wall Street analysts covering the stock give it either a buy or strong buy rating. Life Time and Xponential also have buy ratings from the majority of their analysts but are covered by fewer firms. Timeline The tax bill still needs to pass the Senate and then likely another round of bicameral negotiations before it is sent to President Donald Trump for final approval. The fitness provision could fall out or change as a part of this process. Mills estimated that the bill could hit Trump's desk in August, with about 80% of the House legislation making the final cut. Given that the HSA expansion has not been controversial, Mills said the line item benefiting gyms has a "fairly high probability of staying in." Of course, the market may price in the expected benefits from the tax bill before it is signed by Trump. The gym stocks rose on Monday, and Planet Fitness is now up more than 6% over the past month. In a statement to CNBC, Life Time called the bill's provision a "low-cost, high-impact public health strategy." "As it considers the House version, we urge the U.S. Senate to retain this vital consumer health provision to promote the physical and mental wellbeing of millions of Americans," the statement said.
Epoch Times
4 days ago
- Health
- Epoch Times
House Megabill to Expand Health Savings Account Eligibility and Benefits
The One Big Beautiful Bill Act, passed by the House of Representatives on May 22 and currently being debated in the Senate, contains an additional tax benefit designed to help Americans pay for medical expenses. This provision expands eligibility for health savings accounts (HSAs), which allow Americans to use pre-tax money to pay for certain medical costs. Contributions to HSAs have so-called '
Yahoo
4 days ago
- Business
- Yahoo
Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead
Most people call into "The Ramsey Show" wondering how to climb out of debt. But one recent caller? He and his wife are trying to do the opposite. They're in their 20s, fresh out of college, no debt, $200,000 combined income, six months of emergency savings—and their big question was whether investing 60% of their take-home pay was a little too much. Turns out, it might be. Not because they're saving too aggressively—Dave Ramsey loves intensity—but because they're skipping a key step almost every millionaire he's studied has taken. "Very, very few people that we have studied... that became wealthy used that plan," Ramsey said. "Instead, what they have done is they bought and then paid off a home." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The couple, who just got married and are currently renting, laid out their plan: live on her $60,000 salary and invest his $85,000 take-home in 401(k)s, HSAs, and other vehicles. Their goal? For her to eventually become a stay-at-home mom. But Ramsey had one question that changed the tone: "What about your house?" They didn't have one. And to him, that's a red flag—because he's seen what happens when people rent for life. "You can 100% count on rent going up your entire life as long as you rent," he said. "Your largest item is out of your control." In his book "Baby Steps Millionaires," Ramsey details a study of 10,000 net-worth millionaires. Most of them followed a path that involved a modest home, a long-term mortgage, and slow, steady investing. That's not to say saving 60% is bad—it's just rare, and in Ramsey's view, less efficient. "I would save a maximum of 15% of my household income into retirement... stop the HSA, build up a fat juicy down payment, and buy a house in Texas," Ramsey said. Trending: Maximize saving for your retirement and cut down on taxes: . And he's not just talking theoretically. The data backs him up. According to the Federal Reserve, the median net worth of homeowners is around $400,000, while the median for renters is just $10,400. That's not a typo—renters, on average, have less than 3% of the wealth homeowners do. Ramsey even got a little nostalgic about the power of real estate: "Think about the neighborhood that you might buy in... what you could have bought that house for 15 years ago. That's what it's going to be 15 years from now." And while the husband might be fine roughing it for now, Ramsey warned him not to bank on his wife feeling the same. "When she becomes a stay-at-home mama, I promise you this—she's gonna want a house." Ramsey's final take? This couple's drive is rare, and they're already ahead of the game. "You're not going to be a broke guy because you're actually paying attention," he told the caller. But even the most disciplined saver needs a solid foundation—and in his world, that foundation has a deed and a mortgage. Read Next: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Invest where it hurts — and help millions heal:. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
The Herald Scotland
5 days ago
- Business
- The Herald Scotland
Nine provisions lurking in Trump's tax bill you should know about
The bill is likely to be one of the most important pieces of legislation passed during Trump's second term. The immense pressure from the White House to pass the bill makes it a convenient vehicle for lawmakers to add in their preferred policies and increase their chances of making it into law. Still, the bill is not set in stone: The Senate will start considering the bill next week, and the measure may undergo considerable changes. Here are nine parts of the bill you might not yet know about: Making it easier to ignore court rulings Republicans included a provision in the bill that would restrict judges' ability to hold people accountable for violating court orders. It comes as some judges consider contempt rulings against the Trump administration for bypassing court orders restricting their actions. More: How Trump's clash with the courts is brewing into an 'all-out war' The legislation would bar judges from enforcing contempt rulings if they didn't first order a bond, which is commonly set at zero or not ordered in cases when people are claiming the government did something unconstitutional. Democrats have argued it's a clear attempt to bypass the courts, while Republicans say it's an incentive to stop frivolous lawsuits by requiring plaintiffs to pay in. A ban on regulating AI The bill would allocate $500 million to help modernize government with the help of artificial intelligence - and would prevent states from creating new regulations to shape how AI is used or developed. It also would block dozens of states from enforcing AI regulations and oversight structures they've already implemented. There is now no federal AI regulation to take the place of state policies. More: Trump's 'Big Beautiful Bill' could ban states from regulating AI for a decade Tech industry leaders support the approach, warning that regulation can get in the way of innovation in a new industry. Some Republicans in the Senate, however, have raised concerns that the ban is not a good idea without a federal structure to take its place. Cheaper gun silencers Republicans added a provision to the bill that would get rid of a $200 registration fee for gun silencers that has existed for more than 90 years and removed a requirement for gun owners to register their silencers. More: Trump admin allows devices that let some weapons shoot as fast as machine guns "Who asked for this - was it the assassin lobby?" said Rep. Steven Horsford, D-Nevada, at a hearing on the legislation earlier in May. But Republicans argued that eliminating the fee aligns with the Second Amendment, which protects a right to bear arms, and protects gun users' hearing. Tax-free gym memberships The bill would qualify sports and fitness expenses as qualified medical care, which would allow people to pay for them tax-free through a Health Savings Account. People could spend up to $500 a year on gym memberships through their HSAs, or $1,000 for a married couple. More: Robert F. Kennedy now heads Trump's MAHA commission: What to know The benefit could not be used at "a private club" owned by members, or a facility that offers golf, hunting, sailing or riding facilities. The health and fitness part of the business also couldn't be "incidental to its overall function and purpose." Purple Heart benefits Some people who earned a Purple Heart in the military - the decoration for service members who were wounded or killed in action - would qualify for a new income tax credit under the legislation. Purple Heart recipients who lost a portion of their Social Security disability benefits because they got a job could get a higher Earned Income Tax Credit to make up those lost Social Security benefits. 'Trump accounts' for kids The bill would create new savings accounts dubbed "Trump accounts" in which babies who are born between January 2025 and January 2029 can benefit from a one-time $1,000 payment from the federal government placed in the account. Parents would then be able to contribute up to $5,000 a year. The savings would be invested in a stock fund that would grow with the U.S. stock market. More: After 100 days, one thing is clear: The stock market is leery of Trump's tariffs The child could be able to access a portion of the money when they reach age 18 for things like education, training or buying their first house. They can use the full balance at age 30. Pell grant and student loan changes The bill includes a change to the Pell Grant program, which provides federal aid to low-income students to attend colleges and universities. Right now, students are considered full time and qualify for the maximum amount of aid if they take 12 credits a semester. The bill would change that to 15 credits a semester, which the National College Attainment Network estimated would result in a nearly $1,500 cut in benefits for students who can't increase their course load because of work or caretaking. More: Trump orders shift on student loan management to Small Business Administration It would also end multiple existing programs for people to pay back their student loans, including a Biden-era program that tailored payment requirements to the person's income. It would be replaced with a new fixed-rate program. Charging foreign workers Migrants often move to other countries in part to send money home to their family or community abroad. The United States is the world's largest source of these transfers, known as remittances. The Republican bill would implement a 3.5% tax on those transfers, which must be paid by the person sending the money. It would include an exemption for U.S. citizens and nationals sending money abroad. New immigration fees The GOP proposal would charge new fees for people seeking to immigrate to the United States. Among the proposed fees: $1,000 to request asylum, $550 payments every six months for work authorization, $500 to apply for temporary protected status, $1,000 for undocumented immigrants paroled into the country, and $3,500 to sponsor unaccompanied child migrants.
Yahoo
5 days ago
- Business
- Yahoo
Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead
Most people call into "The Ramsey Show" wondering how to climb out of debt. But one recent caller? He and his wife are trying to do the opposite. They're in their 20s, fresh out of college, no debt, $200,000 combined income, six months of emergency savings—and their big question was whether investing 60% of their take-home pay was a little too much. Turns out, it might be. Not because they're saving too aggressively—Dave Ramsey loves intensity—but because they're skipping a key step almost every millionaire he's studied has taken. "Very, very few people that we have studied... that became wealthy used that plan," Ramsey said. "Instead, what they have done is they bought and then paid off a home." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The couple, who just got married and are currently renting, laid out their plan: live on her $60,000 salary and invest his $85,000 take-home in 401(k)s, HSAs, and other vehicles. Their goal? For her to eventually become a stay-at-home mom. But Ramsey had one question that changed the tone: "What about your house?" They didn't have one. And to him, that's a red flag—because he's seen what happens when people rent for life. "You can 100% count on rent going up your entire life as long as you rent," he said. "Your largest item is out of your control." In his book "Baby Steps Millionaires," Ramsey details a study of 10,000 net-worth millionaires. Most of them followed a path that involved a modest home, a long-term mortgage, and slow, steady investing. That's not to say saving 60% is bad—it's just rare, and in Ramsey's view, less efficient. "I would save a maximum of 15% of my household income into retirement... stop the HSA, build up a fat juicy down payment, and buy a house in Texas," Ramsey said. Trending: Maximize saving for your retirement and cut down on taxes: . And he's not just talking theoretically. The data backs him up. According to the Federal Reserve, the median net worth of homeowners is around $400,000, while the median for renters is just $10,400. That's not a typo—renters, on average, have less than 3% of the wealth homeowners do. Ramsey even got a little nostalgic about the power of real estate: "Think about the neighborhood that you might buy in... what you could have bought that house for 15 years ago. That's what it's going to be 15 years from now." And while the husband might be fine roughing it for now, Ramsey warned him not to bank on his wife feeling the same. "When she becomes a stay-at-home mama, I promise you this—she's gonna want a house." Ramsey's final take? This couple's drive is rare, and they're already ahead of the game. "You're not going to be a broke guy because you're actually paying attention," he told the caller. But even the most disciplined saver needs a solid foundation—and in his world, that foundation has a deed and a mortgage. Read Next: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Invest where it hurts — and help millions heal:. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
