How are they helpful, what are employers asking for, how to implement, helpful for participants/sponsors?
HSA’s or Health Savings Accounts are a tool that allows employees to save money on a pre-tax basis for health care expenses. One of the big differences between the HSA and FSA is that the HSA doesn’t have a “use it or lose it” design that the FSA does. It can be carried over year to year and even deferred until retirement if the employee chooses. The CPA’s that we work with appreciate the tax advantages of the HSA, as the money going into the account is pre-tax, the account would grow tax- deferred and then withdrawal would be completely tax-free, assuming it is a qualified expense.*
Some of our clients have begun contributing money to the employee’s HSA as a part of a benefit strategy and the employee is able, with many HSA providers, to determine how to save or invest the funds. We see the potential for continued growth in this market and are excited to help our clients decide if the HSA is a good fit for an overall benefit strategy.
*To be able to offer the HSA to their employees, the company must be using a high deductible health insurance plan.