Clarity Benefit Solutions Offers Tips for Maximizing HSA Enrollment Numbers This Year
NEW YORK, July 17, 2018 /PRNewswire-iReach/ -- HSA administration company, Clarity Benefit Solutions, offers tips for maximizing HSA enrollment numbers this year.
Health Savings Accounts (HSAs) are employee benefits programs that allow employees to contribute funds to pay for health expenses. They are open to those who are enrolled in a High Deductible Health Plan (HDHP). To maximize HSA enrollment numbers, employers must emphasize the multitude of benefits that HSAs offer. Here are some tips to share with employees.
First, to maximize enrollment numbers, it is vital that employees fully comprehend an HSA's benefits, particularly the following: contributions are tax-deductible, employer contributions are excluded from an employee's gross income, and all contributions remain in the employee's HSA until they are used. Withdrawals that are used to pay qualified medical expenses for employees, their spouses, and dependents are never taxed. The funds also roll over from year to year. The interest earned on the account accumulates tax-deferred through the years. If it is used to pay for qualified medical expenses, it is tax-free. The HSA also stays with the employee—even if they change jobs.
Employees should know that they should max out their contributions. By contributing the maximum amount to their HSA, it will decrease their tax burden and increase their savings rate by investing the tax savings. This year, the contribution limit is $3,450 for individuals and $6,900 for families.
Next, emphasize that employees should contribute via payroll deduction. By doing so, they can avoid paying FICA taxes (Medicare and Social Security) on their contributions. And, if employees are maxing out their contributions, they could realize significant tax savings per year!
Employers should also tout the benefits of treating an HSA as a traditional Individual Retirement Account (IRA) when the employee reaches the age of 65. These funds can be used for qualified medical expenses and will continue to be tax-free. However, all other expenses will be taxed as income. Employees can also invest their entire HSA balance in low-cost index funds, provided that the employer offers this option.
About Clarity Benefit Solutions: Clarity Benefit Solutions HSA administration provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, [email protected]
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SOURCE Clarity Benefit Solutions
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