Health Savings Account (HSA)

Employees are embracing Health Savings Accounts (HSAs) at a very quick pace as they shift towards lower- premium High Deductible Health Plans (HDHPs). The flexibility of this Consumer Driven Account (CDA) makes it one of the most cost-effective ways to pay for qualified healthcare expenses and people are taking notice. Each year, HSAs are more prevalent in the healthcare and financial industry news as a great strategy to set money aside to pay for qualified expenses.

Since 2003, these Plans have been the fastest growing employee benefit. Why the popularity? Simply put, HSAs make good sense. Besides helping employers reduce their health insurance costs, when HSAs are in place, employers add depth to their employee benefits and keep more money in their pockets. More and more employers are choosing this consumer driven healthcare account to empower their employees.

Why Offer an HSA?

With HSAs, both employers and employees make payroll contributions to pay for current and future eligible medical expenses. Contributed funds are tax-free to employees and tax deductible for employers.

HSAs Offer a Triple Tax Advantage!

1

Federal tax deductions on contributions

2

Tax-free growth on invested funds

3

Tax-free withdrawals for qualified medical expenses

For employers, an HSA creates tax savings! Hidden fees and risks associated with the reimbursement process are eliminated. Furthermore, through a High Deductible Plan, employers can reduce health insurance costs.With an HSA, employers have the ability to provide employees with more control over their healthcare.

Your Estimated Tax Savings

Without HSA

Gross Annual Pay (Estimate) $60,000

Estimated Tax Rate (30%) -$18,000

Net Annual Pay =$42,000

Estimated Annual Healthcare Expenses -$6,750

Final Take-Home Pay =$35,250

All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, healthcare expenses, and tax savings may be different.

With HSA

Gross Annual Pay (Estimate) $60,000

Maximum Annual Healthcare HSA Contribution -$6,750

Adjusted Gross Pay =$53,250

Estimated Tax Rate (30%) -$15,975

Final Take-Home Pay =$37,245

Take Home This Much More !!! $2,0255

What is a HSA?

Health Savings Account (HSA).

How does a HSA work?

Health Saving Accounts process.