Finally, HSAs are tax-advantaged savings accounts that are used in combination with a qualified High Deductible Health Plan (HDHP), offering employees an alternative way to manage their healthcare. Employees set aside a portion of their earnings – before taxes – into an account to help pay for medical expenses. HSA funds also belong to employees and can be carried over from year to year, so there is no use-it-or-lose-it stress.
As a result, HSAs essentially offer triple tax savings to employees:
- Federal tax deductions on contributions
- Tax-free growth on invested funds
- Tax-free withdrawals for qualified medical expenses
In summary, our solutions can help employers save money on health insurance premiums by offering HSAs along with a qualified HDHP, in addition to adding depth to their employee health benefits and retirement plans with secure, FDIC-insured financial accounts.
Unsure what items are eligible for HSA dollar use? Utilize Health Shopper to know for sure and easily purchase the products you need, too.