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Health Savings Accounts (HSAs)
Rising health care costs, for medical services and insurance, are a great concern to us all.
The Health Savings Account (HSA) is an effective way to help you and your employees manage these expenses.
The HSA, when paired with a High Deductible Health Plan (HDHP) allows your employees to make tax-free* withdrawals to pay for qualified medical expenses. Pre-tax* contributions can be made by the employee and/or your company up to the maximum allowed by the IRS**. Contributions are held in an interest-bearing deposit account that the owner can access with a check card or check. The balance held in the account earns tax-deferred interest and will remain in the account the next year. The balance doesn’t affect the next year’s contribution – it’s there for your employee to use in the years to come for qualified medical expenses and retirement after age 65.
Plus when your employee’s account reaches $3,500, an additional mutual fund investment option can be added through our brokerage provider, Synovus Securities, Inc., allowing investment of money in one of several Fidelity Investment® mutual funds***.
For you, the business owner:
It can reduce the cost of providing health care benefits; encouraging your employees to use the lower cost high deductible health plan.
You’re providing another great benefit for your employees.
There may be tax advantages to your company. Talk to your tax advisor to learn how.*
Your employees benefit in the long and short-term:
Lowers taxable income and pre-tax or tax-deductible contributions
Accrues interest on the balance of their account on a tax-free basis
Allows penalty and tax-free withdrawals for qualified medical expenses
Reduces out-of-pocket expenses with a lower premium insurance plan