October 15 is National HSA Awareness Day, an annual event that focuses on the importance of Health Savings Accounts within the employee benefits industry and emphasizes its significant impact on Americans. To help spread awareness about this important benefit, P&A is outlining the special tax advantages of HSAs, how consumers can determine if they’re eligible, and the HSA administrative service P&A provides employers.
First Thing First – What is a Health Savings Account?
A Health Savings Account or HSA is an employee-owned account that allows eligible participants to set aside pre-tax dollars to use for qualifying medical expenses. HSA members can use their funds in real-time or grow their accounts to use in the future or even retirement.
HSA Tax-Saving Perks
Health Savings Accounts are packed with multiple savings opportunities and provide account holders with three different saving advantages. With an HSA:
- Contributions are made with pre-tax dollars
- Your funds earn interest tax-free
- Withdrawals for qualified expenses are tax-free
That’s right – HSAs boost significant savings with its triple tax-savings benefits! Unlike other benefit options like FSAs, HSAs provide savings now and when you reach the golden years.
HSA Eligibility – Am I Eligible to Enroll?
To qualify for an HSA, you must meet these requirements:
- Be 18 years of age
- Have an HSA compatible high-deductible health plan (HDHP) and not be covered by any other prohibited health coverage (i.e., certain FSAs or HRAs).
- Make sure your HDHP meets the annual minimum deductible limits determined by the IRS
If your employer offers an HSA compatible health plan but doesn’t provide an HSA benefit, you can enroll in an HSA on your own. Many banks offer HSA enrollment for members. Check with your local banking institution for more information.
Employers Can Easily Integrate P&A’s HSA Option
P&A’s knowledgeable Benefit Consultants can provide strategic, thoughtful suggestions on the best way to launch an HSA option to your company. When you use P&A’s HSA platform, you get the benefits of:
- A robust implementation team and clear onboarding process – we help you every step of the way as you get the plan setup for your employees.
- A dedicated daily contact for all employer/HR needs.
- A knowledgeable Participant Support Center for all employee questions – with extended service hours for account holders!
If you’re interested in adding an HSA option to your company’s benefit plan, contact a P&A Benefits Consultant.