Infographic: Why an HSA is a Win for Employers and Employees

January 11, 2017

Whether you’re an employer looking to offer better employee benefits or an employee hoping to pinch a few pennies for healthcare expenses, a Health Savings Account (HSA) is a no-brainer. We’ve put together this brief but handy infographic to demonstrate exactly why an HSA is a win-win. 

Why an HSA is a win for employers and employees

Why an HSA is a Win for Employers

If you’re responsible for building the benefits package at your company, the HSA should definitely make the cut. Here’s why:

  • High-Deductible Health Plan (HDHP) coverage is more affordable for employers: HSAs can only be paired with HDHPs, and many employers nationwide are making the switch. It offers cost savings for you, and your employees may favor the lower initial premiums – especially when paired with a health savings account.
  • Employer contributions are tax deductible: To give an extra incentive to employees, you may consider adding an employer contribution into employees’ accounts, and because these are tax deductible, they won’t break the bank!
  • Your benefits package will be more robust: To recruit and retain a talented workforce, your benefits need to stand out! An HSA is a great perk that employees will appreciate now and in retirement.

Why an HSA is Win for Employees

If you’re enrolled in an HDHP and have the opportunity to participate in a health savings account through your employer’s benefits package, be sure to take advantage of this great perk. There are countless reasons to participate, but here are some major ones:

  • The benefit offers triple-tax savings: Contribute HSA funds pre-tax, withdraw them for eligible expenses without paying tax and earn tax-free interest on the balance you accumulate.
  • The “Use or Lose” rule doesn’t apply to HSAs: Unlike a Flexible Spending Account (FSA), the money that remains in your account at the end of the year gets carried over because it’s a savings account, not a spending account. So you never have to worry about losing unused funds!
  • Enrollees save on qualified expenses: Because health savings account funds are contributed pre-tax, you save money on eligible medical, dental and vision expenses that you pay for with your HSA.
  • Helps build savings for retirement: This type of account isn’t just a right-now health savings tool. It can also serve as a retirement fund similar to a 401(k). With the ability to invest HSA dollars in mutual fund options after a certain threshold, you can grow your HSA balance like your 401(k) as well!

Let the numbers speak for themselves. See what your savings would be with an HSA by using our HSA Savings Calculator.  

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