Latest news with #HealthSavingsAccounts
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Big Tax Breaks for Health Savings Accounts Get Even Better in the GOP Bill
Health savings accounts are already a sweet deal for many Americans. They could soon get sweeter. The sprawling tax-and-spending bill passed by the House of Representatives on May 22 includes changes to HSAs, as they're called. If enacted by the Senate, which takes up the legislation in June, they would expand access to these tax-favored accounts.
Epoch Times
6 days ago
- Business
- Epoch Times
Lesser-Known Provisions of the House-Passed ‘Big Beautiful Bill'
Following its passage by the House in the early morning hours of May 22, the One Big Beautiful Bill Act—the vehicle to fund and implement President Donald Trump's agenda—is now in the process of being evaluated by the Senate. Its Aside from these well-known components of the legislation, several lesser-known—but impactful—provisions were also slipped into the bill, which leaves few areas of government and the federal budget untouched. Here's what to know about those. Artificial Intelligence The bill would begin to integrate artificial intelligence into various sectors of the federal government, while restricting states' ability to regulate the novel technology for a 10-year period. The text of the bill reads, 'no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act.' Despite several hearings on the topic over the past several years, Congress has until now made little legislative progress on the growing issue. Related Stories 5/23/2025 5/20/2025 This provision could be unpopular with tech industry chiefs—who have in the past warned of the need for regulation, expressing fears that the technology could escape human control—as well as senators who have investigated the issue. Additionally, the bill delegates hundreds of millions of dollars to use AI in government functions like examining Medicare payments, naval shipbuilding, and audits of the Department of Defense. Courts Barred From Enforcing Contempt Amid the administration's ongoing disputes with the judiciary—particularly over issues related to Trump's mass deportation operation—the bill would limit federal courts' ability to hold members of the administration in contempt. Specifically, the bill would require plaintiffs to provide a bond before a judge could enforce contempt orders. Under current federal court procedures, this fee can be waived depending on the nature of the case. This requirement would be imposed retroactively upon enactment of the bill, and could limit the judiciary's options to respond to administration's failures to comply with a court order. HSAs Boosted The legislation would enhance Health Savings Accounts (HSAs), federal accounts that allow taxpayers to save tax-free money for eligible medical services, by making gym memberships eligible for the program. It would allow beneficiaries to withdraw $500 a year to pay for such expenses, or $1,000 for married couples, albeit with a laundry list of rules about what types of physical activity qualify. For example, eligible facilities cannot be 'a private club owned and operated by its members,' and cannot offer 'golf, hunting, sailing, or riding facilities.' Other materials, such as videos and books related to personal fitness, are not eligible for HSA account funds under the bill. Certain taxpayers will also be eligible for an increased contribution limit of $4,300 for single taxpayers and $8,550 for married couples, depending on income. Estate Taxes The bill would also extend the 2017 estate tax cuts, allowing single-owned estates to pass on up to $15 million tax-free, and allowing couple-owned estates to pass on up to $30 million tax-free. It's a change that could result in less than 0.1 percent of estates being subject to federal estate tax, by some estimates. The think tank wrote that with the extension of this exemption, 'one can expect the share of estates subject to the tax to remain close to … 2019 [levels], when only 0.08 percent of estates were taxed. Free Tax Filing Tool Repealed The legislation repeals a program that allows taxpayers to file directly, dubbed 'Direct File,' instituted by President Joe Biden's administration. As part of a push to end the dominance of services like TurboTax and H&R Block—which tend to charge most taxpayers money for specialized services—the Biden administration created 'Direct File.' It sought to save taxpayers money by allowing them to access the same services usually offered for a fee by tax prep companies, and is currently available in 25 states. The bill would repeal this program entirely, requiring that it be terminated within 30 days of the bill's passage. It leaves open the possibility of a new, similar service pending a report by the Treasury secretary on the feasibility of such a program and taxpayer sentiments. The legislation suggests that up to 70 percent of taxpayers would be eligible to use the new program at no cost. 'Trump Accounts' The bill also adds a pilot program for 'Trump Accounts,' a type of federal trust account that would offer parents a $1,000 bonus per child they sign up for the program. It would allow taxpayers to contribute up to $5,000 a year to the accounts, which would be allowed to grow tax-free until the beneficiary withdraws the money at 18 years or older. The withdrawal would then be subject to either capital gains or income tax rates, depending on the nature of the expense. Expenses like tuition, a first home purchase, or small business expenses would be subject to the lower capital gains tax rate; all other uses of the funds would be subject to normal income tax rates, including an additional 10 percent penalty for unqualified expenses. Tobacco Industry Perks Repealed Another component of the legislation would strip a tax write-off that some U.S. tobacco companies rely on. Under current law, tobacco companies pay an excise tax when they manufacture or import tobacco into the United States. But a loophole in the Internal Revenue Code of 1986 has historically allowed them to recoup much of this excise tax through a process known as substitution drawback. The legislation would repeal this refund, meaning that many tobacco companies could face a higher excise tax burden on their domestic sales than they have in decades. Revocable Tax Exemptions for 'Terrorist-Supporting' Nonprofits The legislation would enable the administration to revoke the tax-exempt status of nonprofit organizations deemed by the administration as 'terrorist-supporting organizations.' An amendment to the Internal Revenue Code of 1986, §501(p)—passed as part of the PATRIOT Act—sought to crack down on nonprofits that funneled money to, or otherwise materially aided and abetted, terrorist groups. The legislation would give organizations deemed to be 'terrorist-supporting' 90 days to amend the situation or face revocation of their tax-exempt status. This provision is seemingly targeted at nonprofits deemed as supportive of Palestinian terrorist groups, such as Hamas, as part of the administration's efforts to combat anti-Semitism in the wake of Hamas's Oct. 7, 2023, attacks on Israel. However, no explicit criteria beyond those laid out in the original 1986 legislation are provided. Ending Excise Tax on Firearm Silencers The legislation also includes a provision to remove the requirement to pay a tax on silencer attachments under the National Firearms Act of 1934. Currently, such attachments—designed to reduce the sound a firearm makes when fired—are subject to a $20 excise tax. The Republican bill would eliminate that fee altogether. The move was immediately celebrated by gun rights groups, who portrayed it as a victory for the Second Amendment. Proponents say these attachments can also reduce hearing damage from firearm sounds, while opponents say that such attachments primarily serve to hide evidence of crimes.
CNBC
14-05-2025
- Business
- CNBC
The best stock picks from the Sohn hedge fund conference
A host of star stock pickers shared their best ideas at the prestigous 2025 Sohn Investment Conference in New York on Wednesday. The annual conference aims to raise funds for the Sohn Conference Foundation to contribute to medical research and is one of the most high-profile gatherings on Wall Street. Among the top conviction picks offered this year by a number of seasoned investment pros speaking before a rapt audience were: Sea Ltd. John Yetimoglu, chief investment officer at Infinitum Partners, saw huge growth ahead for Sea Ltd. , a tech conglomerate headquartered in Singapore, which he called the Amazon of Southeast Asia. "Sea is the backbone of the Southeast Asian economy," Yetimoglu told the conference. "When you think about these countries like Indonesia, Malaysia, Vietnam, Thailand, Philippines, consumer demographics in these regions are some of the most attractive end markets in the world. [The] middle class is young with growing incomes, and e-commerce is in early stages of penetration." The investor said e-commerce marketplace Shopee, a subsidiary of Sea, controls a 55% market share in Southeast Asia. The firm has a "logistics advantage," which translates into lower costs for merchants, and Yetimoglu expects Shopee to continue to beat analyst estimates and raise its future earnings forecasts and see improving unit economics over time. Sea's Garena business, a large gaming platform with 600 million users that has accelerated user and bookings growth, is another catalyst for the stock, Yetimoglu said. Sea's share price is up 54% so far in 2025. . Wex Payments company Wex is trading far below its intrinsic value and has the potential to more than double in the next three to five years, according to Impactive Capital co-founder and managing partner Lauren Taylor Wolfe. Wex is a category leader in three niche segments — mobility, corporate payments and benefits — but is still trading at its lowest multiple in the company's history and half that of peers, Wolfe said. Impactive, which owns about 7% of Wex, sought board representation and voted against three incumbent board members earlier this month. "We can drive tremendous upside on just today's valuation ... Wex doesn't need to be reinvented, it needs to be realigned," Wolfe said, adding that the opportunity lies in resolving Wex's issues with "complacency, complexity and lack of alignment." One growth opportunity for Wex is in its high margin business managing Flexible Spending Accounts and Health Savings Accounts, Wolfe said. Wex shares have dropped neasrly 22% this year. Adobe William Heard, CEO and CIO at Heard Capital, gave his pitch on Adobe , which he said is in the forefront of the artificial intelligence boom. "Adobe's total addressable markets are not fully penetrated. We believe Adobe is well-positioned to win the [generative] AI arms race," he said. Heard said investors tend to misunderstand Adobe's deliberate approach to AI monetization as its creative workflow translates raw AI material into competitive intelectual property. He believes that Adobe's growth is at an inflection point with most of its products less than a year old. Adobe shares have fallen roughly 10% this year. National Vision Holdings Jonathan Lennon, founder and CIO of PLP Funds, shared why he believes National Vision , an eyeglass retailer in the U.S., could be a "rocket ship." The investor said a faster replacement cycle in eyewear is driving an industry turning point, as evidenced now in transaction volumes. Meanwhile, the company's new management is driving managed care monetization, he noted. Lennon said PLP Funds is increasingly confident in the stock and has quietly become one of its biggest shareholders in the stock. "We think this thing can be a total rocket ship. Join us," Lennon said. Shares of National Vision have soared nearly 79% year to date in 2025. Teva, Global Payments Teva and Global Payments are two standout players with profit growth ahead, according to Glenview Capital Management CEO Larry Robbins. Both names have very low 2026 price-to-earnings multiples compared to other S & P 500 companies, he said. Robbins said that Teva has best-in-category efficacy in Phase 2 ulcerative colitis and Crohn's disease treatments and has a multi-billion dollar opportunity in its biosimilars pipeline. The company is also ready to act as an "offensive allocator of capital" having paid back debt and deleveraged its balance sheet, he said. Global Payments, meanwhile, could see meaningful upside as the company achieves scale, cross-selling opportunities and greater balance in working with e-commerce and small businesses, according to Robbins. The investor disputed a widely-held belief that Global Payments' agreement in April to buy rival Worldpay in April was a bad move. "We see meaningful upside to GPN shares," Robbins said, adding that he expects the company to see high-single-digit revenue growth and high teens expansion in earnings per share. Global Payments shares are down more than 25% this year, while Teva is down about 23%. Blue Owl Capital Advent Global Opportunities managing director Mohammed Anjarwala highlighted Blue Owl Capital , an alternative investment asset management company, as his top idea. "Remember, this is a business that's really, really resilient," Anjarwala told the Sohn audience. "We think the outcomes here are asymmetrically attractive." Anjarwala said Blue Owl offers a diversified revenue stream for investors, steady dividends, and a strong opportunity in expanding its offerings to retail investors. Only 3% of retail investors are allocated in alternatives versus 20% of institutional investors, creating potential for large future inflows, he said. Anjarwala projected Blue Owl's earnings per share will double by 2028, fueled mostly asset growth, particularly through a private wealth business. Shares of Blue Owl, which yields 4.5%, are down about 14% this year. Mirion Technologies Radiation detection products maker Mirion Technologies is a recession-proof stock, according to Bornite Capital founder and CIO Dan Dreyfus. According to Dreyfus, 70% of Mirion's revenues are recurring and predictable, making it a hedge against broader uncertainty tied to the fortunes of the economy. The Atlanta-based company also has a large footprint and sells to 95% of all nuclear reactor operators globally. "This is a compounding engine … it's one of these buy and never sell" stocks, Dreyfus said, highlighting a "multi-decade growth profile and its resiliency." "Over time, Mirion's got what it takes to give Vertiv a run for it's money," he added. Vertiv provides critical digital infrastructure, such as power management products, for data centers and other networks. Shares of Mirion have jumped 28% over the past month. Comfort Systems Ryan Packard, managing partner and CIO at Hiddenite Capital Partners, unveiled his idea: Comfort Systems , the second largest employer of construction contractors in the United States. The investor said 85% of Comfort's 19,000 strong labor force goes to a job site every day to construct some of the most complex and critical facilities that make up the backbone of the country. Packard believes Comfort Systems can grow its earnings per share at approximately 25% a year for the foreseeable future. He sees the stock doubling in the next three years. "Long term, FIX has an 18 year history of 25% total shareholder return pay group, and we see a five year outlook at similar rate of compound, "Packard said. "Short term, FIX is in the sweet spot of structural tailwinds from on shoring and AI construction that will persist likely well beyond market expectations." Comfort Systems shares have gained 10% this year.
Yahoo
12-05-2025
- Business
- Yahoo
Some Savers Can Now Take Advantage of the ‘Super Funding' Limit for 401(k) Plans: Do You Qualify?
If you've been wishing you could put more money into retirement accounts to reap the tax benefits, 2025 might be your year — and you still have months left to take advantage. This year, certain 401(k) savers, those ages 60 to 63, can take advantage of a new 'super catch-up' contribution limit, which allows for them to contribute up to $11,250 in catch-up contributions. Be Aware: Read Next: That's significantly higher than the standard $7,500 catch-up limit for those ages 50 and older. This change, introduced by the SECURE 2.0 Act, is a way for people in their early 60s to bolster their retirement savings in their higher earning years. In 2025, the standard employee deferral limit for 401(k) plans has increased to $23,500. Individuals ages 50 and above can make an additional catch-up contribution of $7,500, bringing that total to a juicy $31,000. For those ages 60 to 63, the catch-up contribution limit rises to $11,250, allowing a whopping $34,750. Learn More: To qualify for the enhanced catch-up contribution, you just need to be between ages 60 and 63 at any point during the 2025 calendar year. It's important to note, however, that this provision is optional for employers, meaning not all retirement plans may offer this increased limit — though about 93% of plans are doing so. Consult your plan administrator at your employer. While the enhanced catch-up contributions are a great way for Americans to beef up their retirement plans, not everyone is taking full advantage. According to Vanguard's 'How America Saves 2024' report, only 15% of eligible employees utilized catch-up contributions in 2023. Unsurprisingly, higher participation rates were reported among higher-income earners, with 55% of those earning over $150,000 taking advantage of catch-up contributions. Americans at every income level need to remember that even a small amount adds up quickly over time due to the power of compound interest and the market's time-tested history of returns. In addition to this catch up, financial advisors recommended a strategic approach to maximizing retirement savings: Maximize Employer Match: Always contribute the maximum to your 401(k) to receive the full employer match. Consider Roth IRAs: Especially for younger folks, consider contributing to a Roth IRA as well, for tax-free withdrawals in retirement. Utilize Health Savings Accounts (HSAs): If eligible, contribute to an HSA for additional tax-advantaged savings. Leverage Super Catch-Up Contributions: If ages 60 to 63 and your plan allows, take advantage of the increased catch-up limit to boost your retirement savings. It's also important to note that starting in 2026, high-income earners (those earning over $145,000) will be required to make catch-up contributions on a Roth basis, meaning contributions will be made with after-tax dollars. The 'super catch-up' contribution gives people ages 60 to 63 a real shot at enhancing their retirement savings in a big way. Speak to your financial advisor to be sure you understand eligibility criteria and make strategic planning contributions to prepare you for a financially secure retirement. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 12 SUVs With the Most Reliable Engines 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on Some Savers Can Now Take Advantage of the 'Super Funding' Limit for 401(k) Plans: Do You Qualify? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
The 5 Biggest Financial Worries for Retirees in 2025 and How You Can Address Them
Retirement in 2025 doesn't look like it used to. According to the Global Atlantic 2025 Retirement Insights Survey, 67% of retirees are worried their savings won't last their lifetime. Be Aware: Try This: With concerns over the stability of pensions and Social Security — both traditionally the bedrock of retirement income — many are questioning how to maintain financial security as costs rise, markets swing and lifespans stretch well beyond previous generations. Here are the five financial issues that retirees are most concerned about, along with strategies to manage those concerns. Medical expenses top the list, with 90% of retirees concerned about rising healthcare costs, per the Global Atlantic survey. According to a recent study based on data from the World Health Organization (WHO) the U.S. has the largest gap between lifespan and healthspan — how long someone remains healthy — meaning the average American spends 12.4 years in poor health at the end of their life. Medicare doesn't cover everything, and even routine care has become more expensive. Health Savings Accounts (HSAs) are a tax-efficient way to prepare for healthcare costs in retirement, though contributions must stop once enrolled in Medicare. Jason Bickler, co-head of individual markets at Global Atlantic, recommends annuities as part of a broader plan. 'They offer a steady stream of income for life,' he said, 'which can help retirees confidently cover both routine and unplanned medical expenses without the fear of outliving their savings.' Consider This: Nearly as many survey participants — 89% — said they were worried about inflation impacting spending power, with prices having crept up across the board. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) is currently 2.4% for the 12-month period up to April 2025. Although that's down slightly from recent months, what felt like a solid nest egg five years ago may not go as far in 2025. Bickler emphasized the importance of building a strategy that prioritizes both growth and reliability. 'A steady and guaranteed income stream can be the difference between a comfortable retirement and one marked by financial stress.' Annuities tied to market performance, offering growth with built-in protection, can help offset inflation's impact on income. Additionally, starting a small business or side gig can be a great way to generate extra income during retirement, helping to counteract the rising costs that inflation brings. According to Emily LeMay, co-head of individual markets at Global Atlantic, one of the biggest financial blind spots for new retirees is underestimating how long their retirement could last and the impact of market volatility — 87% noted in the survey that they were 'at least somewhat concerned about stock market volatility.' With retirement lasting 20 to 30 years, or even more, many retirees face the risk of outliving their savings. As individual situations and risk tolerances are different, working with a trusted financial professional can help. Diversifying a retirement portfolio can also help strike the right balance between growth and protection. The risk of recession remains high, with experts putting the odds as high as 90%. A downturn can cause investments to lose value, dividends to shrink and Social Security cost-of-living adjustments to fall short, creating a ripple effect across retirees' financial plans. Managing the impact of a recession is a combination of being cautious with spending and taking a measured approach to investing. Prioritizing needs over wants, downsizing housing and delaying major purchases can help free up cash. Though higher interest rates offer better returns on savings, they also mean higher borrowing costs. That's particularly bad for retirees with variable-rate debt or family members who may need financial help. Paying down high-interest debt should be a priority, as even small extra payments can ease the long-term burden. With 65% of retirees saying lifetime income is a top financial priority, per Global Atlantic, the takeaway is clear: Building a retirement plan that offers long-term security is more important than ever. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early How Far $750K Plus Social Security Goes in Retirement in Every US Region 12 SUVs With the Most Reliable Engines Sources Global Atlantic Financial Group, 'Global Atlantic 2025 Retirement Outlook Survey.' JAMA Network, 'Global Healthspan-Lifespan Gaps Among 183 World Health Organization Member States.' U.S. Bureau of Labor Statistics, 'Consumer Price Index.' This article originally appeared on The 5 Biggest Financial Worries for Retirees in 2025 and How You Can Address Them Sign in to access your portfolio
