Does your health savings account (HSA) have enough funds to carry you through the second half of the year? If it does, is there more you could be doing to grow those funds? We’ve broken down how to know if you’re contributing enough to your HSA to cover costs for the entire year and whether...
In today’s world, employees seek more than just a paycheck. They desire benefits that cater to their unique needs and offer peace of mind. This is where benefits personalization technology comes into play. Let’s explore how modern technology is revolutionizing benefits personalization and how employers can leverage these advancements effectively. The Value of Personalized...
New survey results published during Mental Health Awareness Month indicate that a variety of financial and health factors are the top drivers influencing mental health in this country. Money was the top factor at 52%, with personal health and the health of family/friends also ranking among the top four. There are a variety of ways...
Supporting employees throughout their employment lifecycle is essential for improving engagement, loyalty and long-term satisfaction in the workplace. By optimizing employee benefits and creating a supportive environment, employers can enhance the employee experience at every stage of their journey, from onboarding to retirement. This comprehensive guide will help you understand and implement effective employee lifecycle...
May is Mental Health Awareness Month, an opportunity to raise awareness and reduce stigma surrounding mental health issues in the workplace. As an HR representative or benefits decision-maker, you have a responsibility to support your employees’ mental wellbeing. What can employees do to raise mental health awareness in the office, especially during Mental Health Awareness...
Key takeaways – 2025 HSA contribution limits 2025 HSA contribution limits will increase to $4,300 and $8,550 for self-only and family HSAs, respectively. 2025 HDHP minimum deductible and maximum out-of-pocket limits also are increasing. Health savings account (HSA) contribution limits are on the rise again in 2025. The IRS announced that 2025 HSA contribution limits...
If you’re a first-time medical FSA participant, you may not be familiar with FSA definitions and rules. We’ve provided a list of the top things a first-time medical FSA participant should be aware of in order to take full advantage of their FSA. What is a Medical Flexible Spending Account (FSA)? A medical FSA...
A dependent care flexible spending account (FSA) lets participants set aside pre-tax dollars to help pay for dependent care. Contributing to this benefit reduces taxable income and spreads the benefits of pre-tax dollars throughout the year, helping individuals save 30 percent or more (based on their tax rate) on dependent care costs. Dependent Care...
The season for filing taxes is upon us once again. We’re getting closer to the deadline for filing for 2023. We wanted to share a few tips and reminders about health savings accounts (HSA) you’ll need for your tax return. HSA Tax Prep Checklist Check your W-2 for HSA payroll contributions Get your 1099-SA form...
Most of your employees already understand that health savings account (HSA) withdrawals are tax-free when used for eligible expenses. What most employees miss out on is how significant this need is as they age. Reports show that the third largest expense for retirees, after housing and transportation, are healthcare costs. However, HSAs come with retirement perks that get better after participants reach 65.
NO PENALTIES FOR INELGIBLE EXPENSES
Once an HSA participant reaches the age of 65, they can use their HSA funds to pay for any expense without facing a 20% tax penalty. This means that funds are spent tax-free for eligible healthcare expenses and ineligible expenses are still taxed. This is better than a traditional 401(k), where the funds are taxed as income when retired employees withdraw them.
PAYING FOR MEDICARE AND LONG-TERM NEEDS
Medicare is normally not available to an individual until they turn 65. Because of this, having an HSA adds spending flexibility. One thing to keep in mind is that participating individuals cannot contribute to an HSA plan once on Medicare, but they can always withdraw funds.
Another perk of having an HSA is that employees that purchase long-term care insurance can actually use their HSA funds to pay for different Medicare premiums and/or long-term insurance premiums with limits on how much they can withdraw for these premiums. Long-term care services, such as in-home personal care assistance, adult day health care, skilled nursing, chore services, meal preparation and respite care, along with wheelchairs, hospital beds and oxygen, are HSA eligible unless the services qualify as medical care expenses.
The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.