Health Savings Account
A Flexible, Tax-Free Option for You and Your Employees
If you offer a high-deductible health plan (HDHP), the employees who participate in that plan may be eligible to contribute to a Health Savings Account (HSA) – a flexible, tax-free way to save for their medical expenses. By establishing an HSA program at your company, you’re opening the door to a host of benefits for you and your employees.
- HSAs are avilable to everyone, not just the employees of small businesses and the self-employed
- HSAs allow you and your employees to make tax-deductible contributions and earn interest tax free. Plus, the distributions (the assets withdrawn) are also tax free as long as they’re used for qualified medical expenses.
Flexibility in Spending
- The assets in an HSA can be used to pay for – or reimburse – qualified medical expenses, such as health insurance deductibles, co-payments, prescription medications, and out-of-pocket expenses.
- You’ve heard the phrase, “use it or lose it.” Well, an HSA isn’t like that at all. HSA balances carry forward year after year, allowing you and your employees to budget for health expenses and build up savings to cover qualified medical expenses when the need arises.
- An HSA is owned by each individual. So, it’s his or her responsibility to maintain
- As an added benefit to your employees, you can choose to make contributions to their HSAs.
- The annual contribution limit is based on the type of high-deductible health plan (HDHP) coverage. Please consult a tax advisor for individual and family limits.
Find Out More Today
- As you can see, offering an HSA program (in conjunction with an HDHP) provides benefits to both you and your employees. Call us or stop in to find out more.
This information is intended to provide general information on federal tax laws governing HSAs. It is not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances or under your state tax laws.
For specific information you are encouraged to consult your tax or legal professional.