HSA Administrators, Clarity Benefit Solutions, Shares the Top Eight Benefits of a Health Savings Account
NEW YORK, Oct. 3, 2017 /PRNewswire-iReach/ -- HSA Administrators, Clarity Benefit Solutions, shares the top eight benefits of Health Savings Accounts (HSAs).
Employees use HSAs to pay for current—and future—health care expenses. To be eligible for an HSA, employees must be covered by a High Deductible Health Plan (HDHP). Here of some benefits that participating in an HSA offers.
- The contributions are tax-deductible. Funds placed in an HSA account are tax-deductible; and if the contributions are made through a payroll deduction, the funds are pre-taxed.
- The withdrawals are tax-free. As long as the withdrawn HSA funds are used for eligible medical expenses, these withdrawals are tax-free. Qualified medical expenses include co-pays, deductibles, prescription drugs, and vision and dental expenses.
- HSA funds can be immediately accessed. Monies that employees have placed in an HSA account are immediately accessible.
- Unused funds can roll over. Unused HSA funds can be used the next year. Plus, there is no maximum carryout amount.
- HSAs can be used for medical expenses incurred in retirement. This advantage is not often discussed, but it is important because health expenses can rise during this time in someone's life. Future retirees can use the HSA as a tax shelter for this purpose.
- An HSA account belongs to the employee. The holder of the HSA account makes all decisions regarding the account: how much money is set aside, how the funds are spent, and what the money is spent on. Although employers can contribute to the fund, the employee owns it—even if he or she changes jobs.
- Any interest an HSA earns is tax-free. Funds that are placed into an HSA account are tax deductible off gross income—and the funds grow tax-deferred.
- The monies can be used in unconventional ways. Many situations that go beyond a typical doctor or specialist visit are eligible HSA expenses. For example, psychiatric care, alcoholism treatment, and drug addiction treatment can be paid for with an HSA account. Employees who need additional assistance while recovering from an accident or injury can receive physical therapy. HSA funds can also pay for weight loss for obesity treatment, as long as a physician prescribes it.
About Clarity Benefit Solutions: Clarity Benefit Solutions 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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