More and more employers are moving to HSAs to save money on insurance premiums and provide quality health coverage to their employees. The benefit of HSAs is in the consumer’s incentive to better plan and use health care resources.
An HSA is an employee owned tax-advantaged savings account created to pay medical expenses that is always combined with a qualified High Deductible Health Plan (HDHP). The funds in your HSA can help pay both medical expenses covered, and not covered by your health plan, including your deductible and co-insurance on the qualified plan. An HSA is your account. When used to pay your medical expenses, all of the money you contribute is tax-deductible and goes with you when you retire or change jobs. In this way, an HSA is portable.
Some of the greatest benefits of the HSA are the tax advantages.
* As an employee you pay no income tax taxes or FICA on the employer’s contribution, even if you take the money out the next day.
* The employer gets a full income tax deduction for its contribution and does not have to pay FICA of FUTA on the contribution amount.
* The employer gets a deduction from its taxable income for its contribution, and both the employee and the employer save 7.65% in FICA taxes.
* Appreciation of funds in the account is tax free.
* Withdrawals are tax free for qualified medical expenses for employees
The time to take advantage of Health Savings Accounts is now. Don’t let your traditional plan burden you business with unnecessary cost.
By simply supplying us with some basic information you will be provided with a side by side quote comparison from leading companies offering Health Savings Accounts, with qualified major medical plans.
To connect with a licensed agent who can guide you through this important decision making process or for friendly, impartial advice, please e-mail us at SmallBusiness@GetHealthInsurance.com.
