Participants in 401(k) plans and health savings accounts (HSAs)had higher 401(k) account balances than those who saved only in a401(k), according to a new report by Fidelity Investments. Thecompany’s research also found that those who continuouslycontributed to their HSA saved most of their contributions, whichwill help them pay for escalating health care costs inretirement.

On average, 401(k) participants who also contributed to an HSAin 2011 deferred 8.5 percent of their annual salary into theirretirement plan, while participants who only saved in their 401(k)contributed an average of 8.1 percent.

“During benefit enrollment season, it’s encouraging to see thaton average, saving in an HSA is not done at the expense of anemployee’s crucial 401(k) retirement savings,” said WilliamApplegate, vice president, Fidelity Investments. “Employersand employees alike are increasingly recognizing the importance ofplanning for current and future health care costs and many arebeginning to integrate this tax-advantaged product into theiroverall retirement strategy.”

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.