9 Benefits of Owning an HSA - Health Savings Account

An (HSA) Health Savings Account is a popular option for employees who elect
one of the increasingly prevalent High Deductible Health Plans.

9 HSA Owner Benefits

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Technology

We provide web-based, fully integrated portals with 24/7/365 access to your account information.

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HR Professionals

You will have 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.

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Security

Enjoy secure access to accounts 24-7.

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Managed by Experienced Professionals

Administered by a professional trustee/custodian.

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Healthier Lifestyle

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.

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Investment

The contributions are invested over time and can be used to pay for qualified medical expenses.

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You Own It

You own the HSA, and it is yours to keep — even when you change plans or retire.

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Flexibility

When owned by an employee, can be funded by the employee and the employer.

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Tax Deductions

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).

What are the 2021 HSA - Health Savings Account Contribution Limits?

Health savings account (HSA) contribution limits for 2021 are going up to $50 for self-only coverage and $100 for family coverage. The IRS announced May 21, 2020, giving employers that sponsor high-deductible health plans (HDHPs) plenty of time to prepare for open enrollment season later this year.

The annual limit on HSA contributions will be $3,600 for self-only and $7,200 for family coverage. That’s about a 1.5 percent increase from this year.

In Revenue Procedure 2020-32, the IRS confirmed HSA contribution limits effective for the calendar year 2021, along with minimum deductible and maximum out-of-pocket expenses for the HDHPs with which HSAs are paired.

Update: You have through August 15 to enroll in or change your Health Insurance Marketplace® plan due to the coronavirus disease 2019 (COVID-19) emergency. If you’re currently enrolled in Marketplace coverage, you may qualify for more tax credits. Learn more about new, lower costs.

irs increases hra aca limits

Additional HSA Ownership Advantages

  • HSAs are triple-tax advantaged: funds saved in the account are tax-exempt, interest and earnings.
  • gained in the savings account are tax-exempt, and payments made from the HSA for qualified
  • Expenses are tax-exempt.
  • Participants own their individual HSAs, and they can travel with them from employer to employer, in retirement, and during unemployment.
  • HSA contributions roll from year to year; 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.
  • 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.
  • 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 B3PA offers which are most advantageous to clients.
  • While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute only if you have a High Deductible Health Plan (HDHP).
  • Generally, a health plan (including a Marketplace plan) only covers preventive services before the deductible. For the plan year 2019, the minimum deductible is $1,350 for an individual and $2,700 for a family. For the plan year 2020, the minimum deductible for an HDHP is $1,400 for an individual and $2,800 for a family. When you view plans in the Marketplace, you can see if they’re “HSA-eligible.
  • 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: https://www.irs.gov/publications/p969
  • “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, can spend the money when you need to without a “use it or lose it” deadline, and can use the money on yourself, your spouse, or your kids. Tell your employer how great this would be for you and how offering an HSA makes him look like a hero. It’s an attractive benefit, not only to the current employees but 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. If your employer adds the HSA component and everyone contributes, the tax savings could be huge. 
  • “It’s Simple.” 
  • The administrative requirements of a Section 125 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.  

“Run it Through Our Cafeteria Plan, and You’ll See Big Tax Savings.”

Questions or Need a Quote? Email or Call, we are Happy to Help!

Email solutions@hrserviceinc.com

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