With health care costs continuing to rise, an HSA is a smart way to save for qualifying medical expenses.
- Competitive Interest
- Tax Advantages 1
- No “Use It or Lose It’ Policy
- Free Debit Card
Most adults under 65 who are not enrolled in Medicare and are covered under a high-deductible health plan (HDHP) can qualify for an HSA. HDHPs have higher deductibles and out-of-pocket expense limits than traditional health plans but typically have lower premiums.
In addition to lower premiums, employees and employers can take advantage of the following benefits:
- Employers can make contributions to their employees’ HSAs.
- Employer contributions may be tax deductible.
- Employee contributions may be tax deductible.
- Unlike a Flexible Spending Account (FSA), employees will not lose the money in their HSA if it isn’t used by the end of the year.
- Unused HSA balances can be rolled over until retirement.
- Upon retirement, employees may continue to use their HSA funds tax-free if the funds are used to pay for qualified medical expenses.