Facts about health savings accounts (HSAs)
What's the best HSA strategy by income level?
Disclaimer: These personas are for illustrative purposes only and in all cases you may want to speak with a tax or financial advisor. Information provided should not be considered tax or legal advice.
1. Employee Type: Millennials/Gen-Z with an income between $35-75k/year
Potential Contribution Range:
2. Employee Type: Full-Time HDHP Users Enrolled with an income between $35-60k/year
Potential Contribution Range:
3. Employee Type: Staff with Families with an income between $75-100k/year
Potential Contribution Range:
4. Employee Type: Pre-Retirement Staff with an income between $100-200k/year
Potential Contribution Range:
What else should employers know about HSAs?
- Employers should consider contributing to their employees' accounts on an annual basis. Employer contributions to an HSA are tax-deductible, and this has the added bonus for employees of making it easier to max out their contributions annually.
- Remember: Employer and employee contributions cannot exceed the yearly HSA contribution limits ($3,500 individual, $7,000 family for 2019), so make this information clear to employees during open enrollment.
- If employees are still on the fence about HSAs, remind them that deductible expenses can be paid for with HSA funds, and yearly HSA contributions are tax-deductible for employees as well.
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