Health Savings Account (HSA)
Let employees know you care with a way to save for healthcare costs. Your staff will love the employer contributions as much as you'll enjoy the tax deductions.* Expand your company's benefits package with a Health Savings Accounts.
Health Savings Accounts are designed to help individuals save for qualified medical and retirement health expenses (as defined by the IRS) as well as for businesses to be able to provide affordable health insurance plans with income tax benefits. The HSA consists of two parts: (1) a qualified, high-deductible health insurance policy (HDHP) that covers substantial medical expenses, and (2) a savings or investment account from which one can withdraw money tax-free for qualified medical expenses. Any adult who is covered by a qualified high-deductible health plan (HDHP), and is not covered by any other plan, including Medicare, may establish an HSA. (Please contact your tax advisor for further eligibility requirements.)
HSAs are portable. The account can travel with an employee from job to job, and funds can accumulate without the annual use-it-or-lose-it requirement of a Flexible Spending Account, enabling contributions and earnings to accrue tax-free, just like an Individual Retirement Account (IRA). Funds distributed from the HSA are not taxed if they are used to pay qualified medical expenses. To encourage saving for health expenses after retirement, individuals age 55 and older are allowed to make additional catch-up contributions to their HSAs.
- Greater personal control over healthcare management and expenses
- Prepare for qualified medical expenses
- Earn competitive interest on entire balance
- Make tax-free withdrawals for qualified medical, dental, vision expenses, and more*
- Accessibility to funds**
- Additional personal contributions may be made, tax-free
- Unused funds remain in account and can complement your retirement
- Keep your HSA in your name, regardless of career or life changes
- No service fee checking account
- Must make a deposit into the account within 30 days of opening
- Federally insured by FDIC
- Includes Visa® debit card
- Free online banking and e-statements
- Provide great benefit to employees
- Helps retain and attract good employees
- Contributions are tax deductible*
- Reduced insurance premiums
- Little administrative burden
We also offer non-FDIC insured investment options via Alliance Benefit Group of Illinois for your HSA from multiple mutual fund families. There are no front-end or back-end sales commissions. Website tools can be used to make investment elections, move money between funds, and access education tools. Log in to MyHSA to manage your account online.