What Employers Should Tell Employees About HSAs
There are many reasons why more people don’t take advantage of the savings that come from an HSA (Health Savings Account), but a primary one is that most employers do not inform their employees about how HSAs work and help employees and their families.
After all, using an HSA to pay for health expenses can save employees an additional 20 percent on average – compared to paying out of their pockets. HSAs give employees a way to pay for both current and future medical expenses – even to save for retirement.
Here are some of the best ways to present the benefits of HSAs to your employees:
HSAs are forever – not “use it or lose it.”The money your employees save in an HSA stays until they need it, whether it’s later this year, next year, or 25 years from now. An HSA is a personal account that stays with them, even if they change jobs.
HSAs are great for retirement.If employees know much about HSAs, they usually only think of them as an investment to cover current medical expenses. The fact of the matter is, the average married couple can anticipate more than $240,000 in medical expenses after retirement. An HSA offers a way to save for those health (and other) expenses after retirement.
An HSA is like a 401(k), only better.An HSA can offer better tax savings than a 401k when it’s used to cover medical expenses. Once you turn 65, HSA savings can be spent on non-medical expenses as well. You should consult with your tax advisor to determine the actual savings that can accrue to you.
I advocate HSAs because they can save everybody money – that’s why more employers should be telling their employees how they work and how they will benefit employees. Employers should have a solid understanding of HSAs, how easy it is to lower taxes, cover medical expenses and save for the future.
I can help. Let me help you learn more about how you help your employees with their healthcare costs. Call or send an email. I look forward to hearing from you.