Providing your employees with a quality healthcare plan is a great step toward creating workplace loyalty, keeping everyone healthy, and attracting top talent. But if you’ve opted for a low-premium, high-deductible plan, your workers might experience a bit of trouble with their out-of-pocket medical expenses. You can help them even further by establishing a health savings account (HSA).
Aside from helping them budget for medical expenses, an HSA carries other important benefits. Here are four things you should know about this type of savings account.
It’s portable. Your employees can take this account with them, so they feel secure in knowing they always have access to their money. And because unused funds in the account roll over from one year to the next, there is no worry about losing the money. In fact, they can take the account with them into retirement, and then used the money to pay for things like Medicare premiums, prescriptions, and uncovered medical expenses.
It will lower taxable income. Because contributions are made on a pre-tax basis, your workers can essentially lower their taxable income for the year. Who doesn’t love saving a bit of money on income taxes? Plus, this means they can use untaxed money to cover medical expenses when necessary.
Generous contribution limits. An HSA can provide real value to your employees, because they can save a considerable amount of money toward uncovered medical expenses. For 2022, the contribution limit for HSAs is $3,650 for individuals and $7,300 for those with family plans. And contribution limits are reevaluated on a regular basis, so that savings can keep pace with inflation and the cost of healthcare.
Matching contributions are possible. For employers who want to help out their employees and provide a valuable benefit, matching contributions to HSAs are possible. You can help your employees save toward their deductibles, but with money that stays with them during years they don’t need the funds.
For more information on setting up an HSA for your company, give us a call. One of our knowledgeable experts can walk you through the process.