Health Savings Accounts (HSAs)
HSAs are a growing trend as changes continue within the healthcare industry. FBA implemented HSA programs into our administrative offerings in 2003; since then, we have been one of the only administrators in the nation to work with three separate vendors to fulfill participants’ investment needs. This pre-tax plan compliments qualified high-deductible health plans (HDHPs) allowing employees to use it as a deductible funding vehicle or retirement savings strategy.
Employees can invest money, once they have reached a minimum balance in their HSA, growing their account over time! Like a 401K, participants can set up allocation models for future contributions and can also transfer money to and from their account at any time. Unlike other benefit plans, HSAs offer greater tax benefits, flexibility, and portability to participants.
On average, participants save 30 percent on their healthcare costs while using an HSA. During the open enrollment period, participants determine their contribution limit up to the IRS maximum. However, participants are able to change this elected amount at any point during the year. Additionally, participants take their HSA with them if they were to leave their current employer. Reimbursements under this plan do not have a cutoff date; however, it is important to keep receipts to show proof of expenses. Funds will remain in the HSA account until they are used or until the account is closed. The money can remain in the interest-bearing account until it is needed whether that is next month or in ten years. At the age of 65, the funds in this account can be used for any purpose.
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