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A Health Savings Account, or HSA, helps combat increases
in health insurance costs for those willing to take personal control
of their medical expenses.
Employee Benefits
- Account Ownership
Funds are portable in the case of a change in employers.
- Security
Your high deductible insurance and HSA protect you against high
or unexpected medical bills.
- Flexibility in Funding
Contributions may be made by the employer, the employee, or any
other person or nonperson (charity, etc.) up to your maximum contribution
limit.
- Tax-Free Savings
Unused funds can roll over into the next plan year or be saved for
retirement.
- Contribution allowance
Contributions can be made for the prior tax year until April 15th
of the following year. Your contribution limit is determined by
your qualifying HDHP.
- Tax Deductible Contributions
Contributions to your HSA (that are not from your employer) are
tax deductible.
- Tax-Free Earnings
Interest earned on the account will accrue tax-free within the HSA.
- Tax-Free Withdrawals
Funds used for qualified medical expenses will not be taxed upon
withdrawal.
- Catch up Contributions
If you are age 55 or older you can also make additional catch up
contributions.
Employer Benefits
- Reduced Premiums
Many businesses can substantially reduce their insurance premiums
by switching to an HSA qualified HDHP.
- Lower Fixed Costs
Allows control of two plan components, premium and account funding,
to be decided independently and reviewed annually.
- More benefit dollars
to employees
Ability to deliver insurance dollars directly to employees by funding
the account rather than paying 100% to the insurance carrier.
- Incentives for Employees
The reallocation of premium dollars to the HSA will create an incentive
for employees to take control of their health care expenses.
- Tax Savings
Contributions to employee HSA accounts are tax deductible for the
employer.
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