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Health Savings Accounts (HSA)

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HSAs are tax deductible savings accounts for people enrolled in a qualified high deductible healthcare plan. Participants make pre-tax contributions into their account and use the funds for out-of-pocket eligible medical expenses for themselves and their dependents.  When an employer sponsors payroll deducted HSA’s, the employer reduces their payroll taxes.  Employees reduce their payroll taxes in addition to their income taxes.  Click here to enroll

Triple Tax Savings

Participants enjoy three major tax benefits:

  • Contributions to the HSA are made before taxes, saving on Federal, State, and FICA taxes

  • Withdrawals made for eligible medical expenses are tax free

  • Account earnings (interest on the balance and investment income) are tax free

Additional HSA Benefits include:

  • You own the account! If your employment status changes for whatever reason, you keep the account forever and can continue using the funds

  • Invest your funds once your account balance reaches $1,000 and grow your account quickly

  • At age 55, you can contribute an additional $1,000 over the annual limit

  • Use your funds as a retirement account – starting at age 65, any withdrawals for non-qualified expenses are taxed as regular income

2019/2020 Annual Contribution Limits

Participants with individual coverage:

2020:  $3,550

2021:  $3,600

Participants with family coverage:

2020:  $7100

2021:  $7,200

Contact a Corporate Coverage benefit design consultant to see how we can make this benefit work for you or click here to enroll!