Employee Benefits Account Executive, Jared McEvoy authors some advice regarding Health Savings Accounts for the June 2024 Chamber Connections Magazine!
Nicely done Jared!
Read the full article below:
“Employers seeking to enhance their benefits offerings are increasingly turning to Health Savings Accounts (HSAs) for their dual advantages. HSAs not only diversify benefits packages but also offer significant tax benefits. Employer contributions to HSAs are tax-deductible, and employee contributions reduce taxable income through pre-tax payroll deductions.
For employees, HSAs provide immediate relief from out-of-pocket healthcare expenses by using pre-tax dollars, effectively lowering taxable income and healthcare premiums. Unlike Flexible Spending Accounts (FSAs), HSA funds are not ‘use it or lose it’-they roll over year after year.
The long-term benefits of HSAs are even more compelling. They are one of the few accounts with a triple tax advantage:
1. Contributions are made pre-tax.
2. Withdrawals for qualified medical expenses are tax-free.
3. Investment growth is tax-free, allowing for potential long-term financial growth.
After age 65, HSAs can be used for any expense, akin to a 401k, though non-medical withdrawals may be taxed as income.
In summary, HSAs offer versatile benefits that can lead to healthcare cost savings and serve as a long-term financial planning tool. They are a valuable asset for both immediate and future financial health. Our goal is to let you know that HSA’s are more than just a lower premium health plan. There are many advantages to considering them and long-term positive impacts when planned and utilized correctly. Thank you for taking the time to learn more about HSA plans.”
