Employer-sponsored HSAs provide health and retirement savings
BRADENTON, Fla., Dec. 4, 2017 /PRNewswire-iReach/ -- A leading provider of affordable plan documents for tax-free group benefit plans for over 20 years, Core Documents, Inc., offers a new brochure for employers wanting to know more about the Health Savings Account (HSA) for employees.
HSAs received a lot of press in 2017 as the plan everyone should have. That's because there is practically no downside with this health and retirement savings plan.
Employee benefit
The HSA is a health flex account that reimburses the account holder for eligible out-of-pocket medical expenses. At the start of the plan year, employees elect how much to contribute to the plan with periodic pre-tax salary deductions. As deductibles, co-pays, coinsurance, and other medical, dental, and vision expenses are incurred, the employee pays them and then submits receipts for reimbursement from the HSA.
The employee is free to deposit up to the maximum contribution limits every year because the HSA is a flex benefit with no use-it-or-lose it provision. This eliminates the risk of loss when an employee elects to deposit more funds than will be used in the current plan year.
In fact, it is wise for an employee to elect the maximum tax-free contribution every year. Unused funds stay in the employee-owned HSA deposit account until retirement. Then, it can be taken out for any reason at all, subject to regular income tax.
Employer benefit
Adding an HSA to an employer-sponsored group health plan is a big win for employers, too.
First of all, it is an attractive benefit that improves employee satisfaction with their health plan. That is key to retaining and obtaining the best people.
On top of that, the HSA is virtually guaranteed to pay for itself in short time with the same tax savings as the base group plan does. Those tax savings can add up to 40% for employees by eliminating federal income and payroll tax and, in most cases, state income tax on contributions. Employers see matching tax savings of 8% in payroll taxes on the same amount.
The brochure
Employers can download a free brochure explaining the benefits and requirements of Health Savings Accounts at the Core Documents web site. The brochure is a full-color, four-page document. It includes a helpful form to gather information needed to design a personalized HSA plan document package. Just click here.
About Core Documents: Helping employers save money with tax-advantaged and strategic group health benefit choices for more than 20 years, Core Documents is The Trusted Source in affordable plan documents. Core Documents offers stand-alone plan document packages for Section 125 Premium-Only Plans (POP) and Health Reimbursement Arrangements (HRA). These plans allow employees to save up to 40% by pre-taxing health insurance premiums; employers save up to 10% in matching payroll taxes. For more information, call 1-888-755-3373, send an email to [email protected], or visit the web site at http://www.coredocuments.com.
Media Contact: Gene C. Ennis, Core Documents, Inc., 888-755-3373, [email protected]
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SOURCE Core Documents, Inc.
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