A health savings account (HSA) is a full-featured spending and savings account that allows participants to plan for the future, both in the short-term and long-term sense. In the short term, an HSA makes it easier to pay for qualified health expenses. Any funds not used during the plan year are retained by the account holder, allowing the account to build up and be used for future health care expenses.
In the long-term sense, an HSA can be used as part of a retirement-planning strategy as well. The estimated total health care expenses for a healthy, retired couple in their mid-60s can be close to a half-million dollars. Planning for these expenses can pose a challenge, especially since most middle-aged members of the workforce are trying to save money for other retirement expenses, including housing, daily living costs, and insurance. With an HSA, the account holder can set aside money each year, in addition to any funds set aside in a 401k or other retirement account. Any unused funds are kept, allowing the holder to build a nest egg in the HSA that can be used to pay for those expensive health care costs.
“An HSA benefits both the employer and the enrolled employee,” stated Jody Oliver, president and CEO of Infinisource Benefit Services. “Funds set aside in an HSA through an employer’s cafeteria plan are pre-tax, so more of the employee’s money can be used on qualified expenses. Plus, employers offering HSAs as part of their benefits package can help attract and retain better talent.”
Additionally, funds in an HSA are FDIC-insured and the account may bear interest. As more employees participate in the company-sponsored HSA, the FICA and FUTA payroll taxes for the employer can also be reduced.
With an HSA from Infinisource Benefit Services, all monthly reports generate automatically with email alerts and a secure portal, creating a paper-free administration process. Online enrollment is user-friendly and allows the account holder to designate direct deposit and investment accounts. Additionally, the HSA account administration integrates within a single platform, which also houses additional Infinisource plans like flexible spending accounts, health reimbursement arrangements, wellness, and transportation/parking plans.
An HSA can only be used in conjunction with a high-deductible health plan. Employers who offer this useful option as part of their benefits package can help employees become more informed health care consumers while planning and saving for the future.
About Infinisource Benefit Services
Infinisource Benefit Services has been a leader in the COBRA and benefits administration industry since it started in 1986. Over the past 30 years, Infinisource Benefit Services has grown and expanded to include administration for COBRA, Flexible Spending Accounts, Health Savings Accounts and Health Reimbursement Arrangements. Over 10,000,000 COBRA notices have been generated without a single adverse judgment or penalty. Infinisource Benefit Services has also processed more than 7,500,000 FSA/HRA claims and that number continues to grow. With 30 years of experience comes a unique understanding of employers’ needs and how to best provide for those needs. For more information, visit www.infinisource.com.
SOURCE Infinisource Benefit Services