HSA
Health Savings Account
HSA or Health Savings Account is an investment vehicle designed to help you pay for medical costs without worrying about paying taxes on those funds and is a popular option for employees who elect one of the increasingly prevalent High Deductible Health Plans. Healthcare expenses are skyrocketing, causing millions of people to go bankrupt each year. Most people can’t afford these outrageous costs, so they must choose between medication and food for themselves or their families. A health savings account lets you withdraw cash from your HSA to pay for healthcare expenses. This cash is pre-taxed, so you save on taxes and manage your finances more efficiently. Use this account for medication, dental care, vision care, etc.
Keep your Health Savings Account plan administration worries to a minimum. You will have peace of mind knowing that you are working with an experienced administrator who handles all aspects of your plan, including the set-up, compliance, and day-to-day administration. In addition, our dedicated HSA experts help you understand the HSA regulations year-round.
HR Service is the industry leader in providing HSA administration. You can feel confident knowing you have an expert team working for you.
We provide web-based, fully integrated portals with 24/7/365 access to your account information.
Administered by a professional trustee/custodian.
Access to our Human Resources staff with safe and easy-to-use online, self-service portals you and your employees can use 24/7/365.
The contributions are invested over time and can be used to pay for qualified medical expenses.
When owned by an employee, can be funded by the employee and the employer.
Enjoy secure access to accounts 24-7/365.
HSA holders can make a one-time transfer from a traditional individual retirement account (IRA) or a Roth IRA to an HSA as long as they are owned by the same person and are eligible to contribute.
Your contributions are tax-deductible or pre-tax (if made by payroll deduction) and interest earned on your account and withdrawals for qualified medical expenses are tax-free! (Unused funds and interest are carried over, without limit, from year to year).
Now you can promote a healthier lifestyle through increased employee involvement and use of 100% covered preventative care. Go green with paperless online claims, direct deposit reimbursement, and electronic statements.
Technology
We provide web-based, fully integrated portals with 24/7/365 access to your account information.
It's yours to keep, even when you change plans or retire.
Health Savings Account Advantages
- They are triple-tax advantaged: funds saved in the account are tax-exempt, interest and earnings.
- The most significant advantage of Section 125 Premium Only Plan – even without an HSA – is its tax-advantaged status.
- When you pay for insurance through a Section 125 POP plan, the premiums are deducted from your paycheck on a pre-tax basis – that means they come out of your taxable income, reducing both your income tax and FICA taxes. It’s like getting an instant pay raise!
- Expenses are tax-exempt.
- Participants own their individual HSAs and can travel with them from employer to employer, in retirement, and during unemployment.
- Contributions roll yearly; there is no deadline for using the funds, and the FSA, the use-it-or-lose-it rule, does not apply.
- It can also become a supplemental retirement account. While health expenses continue to be eligible expenses for retirees, in addition, retirees can pay for any expense from their HSA with no additional tax penalties,
- Fully integrates accounts with our Limited or Post-Deductible FSA Options, allowing your employees to get even more tax advantage reimbursement savings.
- The Provider Pay and Claims Integration features HR Service B3PA offers are most advantageous to clients.
- See IRS Publication 502 for a list of qualified medical expenses: https://www.irs.gov/pub/irs-pdf/p502.pdf
- See IRS Publication 969 for information on the tax treatment of HSAs: publications.
- We have partnered with HealthCare Bank to act as the HealthCare Bank for our HSA clients. Healthcare Bank offers a full suite of investment options for account holders with account balances exceeding $2,000.
- “Your Employees Will Appreciate It.” Everybody’s trying to do all they can to save money. An HSA is an excellent benefit because it lets you put aside money to pay for health care expenses. You can earn interest on the contributions tax-free, spend the money when you need to without a “use it or lose it” deadline, and use the money on yourself, your spouse, or your kids. Tell your employer how great this would be for you and how offering this plan can make him look like a hero. It’s an attractive benefit to the current employees and any future talent he might want to attract.
- Including HSAs in the Section 125 plan has the same effect as any other benefit added to the plan – employees contribute, taxable income is lowered, and there are tax savings all the way around. The tax savings could be huge if your employer adds the HSA component and everyone contributes. The administrative requirements of a Section 125 Plan plan may seem daunting, but there’s no need to be intimidated. Plan administration can be painless if you get the right type of help; that is where we come in.
- Section 125 plan has the same effect as any other benefit added to the plan – employees contribute, taxable income is lowered, and there are tax savings all the way around. If your employer adds the HSA component and everyone contributes, the tax savings could be huge. The administrative requirements of a Section 125 Plan plan may seem daunting, but there’s no need to be intimidated. Plan administration can be painless if you get the right type of help; that is where we come in.
2022 and 2023 Contribution Limits:
The IRS just released 2023 limits for HSAs, HDHPs, and EBHRAs. The 2023 HSA limit increases are in response to our country’s recent spike in inflation, with rates increasing at a 40-year high. The 2023 HSA limits were announced as part of Revenue Procedure 2022-24.
The new 2023 limits are:
HSA | Single $3,850 / Family $7,750 per year |
HDHP (self-only coverage) | $1,500 minimum deductible / $7,500 out-of-pocket limit |
HDHP (family coverage) | $3,000 minimum deductible / $15,000 out-of-pocket limit |
EBHRA | $1,950 |
HDHP (self-only coverage) | 2022 | 2023 |
Minimum deductible: | $1,400 | $1,500 |
Maximum out-of-pocket limit: | $7,050 | $7,500 |
HDHP (family coverage) | 2022 | 2023 |
Minimum deductible: | $2,800 | $3,000 |
Maximum out-of-pocket limit: | $14,100 | $15,000 |
EBHRA | 2022 | 2023 |
Limit | $1,800 | $1,950 |