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...
Employee benefits can be complicated. You might be tempted to come into this open enrollment season ready to sign up for the same package as last year just to make it quick and painless. However, doing that may mean missing out on significant savings. Here, we’ll explain some of the most popular employee benefits and what they can do for you.
HSA
If you opt for a high-deductible health plan (HDHP), you will be eligible for a Health Savings Account, or HSA. You can contribute a portion of your paycheck, pre-tax, to this account, which can be saved or used for eligible medical, dental, and vision expenses. Your employer also has the option to contribute to your HSA.
HSAs have several advantages for participants.
They offer triple tax savings- contributions, earnings, and withdrawals are all tax-free.
HSA funds can be invested and are proven to perform as good or better than traditional investment accounts, such as a 401(k) or an IRA.
HSA funds roll over year-to-year, and the funds never expire. You can use your funds for medical expenses now, or save it for later.
FSA
Flexible Spending Accounts, or FSAs, are similar to HSAs, but with a few notable differences. With an FSA, you also contribute pre-tax earnings to be used for eligible expenses. FSAs do not require an HDHP.
FSAs are not a savings account like an HSA. Therefore, funds must be used before the end of each year. However, employers have the choice to either add a two-and-a-half-month grace period after the end of a plan year, or a rollover. The rollover amount allowed for 2021 is $550. Employers need to contact Advantage Administrators to add one of these options to their plan.
There are several types of FSAs: general-purpose medical FSAs, limited-purpose medical FSAs, combination medical FSAs, and dependent care FSAs. Each of these has different rules. General-purpose medical FSAs cannot be used in conjunction with an HSA, but the other three can.
The two most common FSA plans are the general-purpose medical FSA and the limited-purpose medical FSA. With a general-purpose medical FSA, funds can be used for any eligible medical, prescription, dental, or vision expense.
You can use funds from a limited-purpose medical FSA only on eligible dental and vision expenses. This benefit can be used in conjunction with an HSA.
HRA
A health reimbursement agreement, or HRA, is a plan funded by employers which reimburses employees for out-of-pocket medical expenses. These plans are customizable by the employer, so it’s important to get information about the plan before enrolling in it.
Commuter Benefits
Some employers choose to offer commuter benefits, which can help pay for costs such as public transportation, vanpooling, and parking. Commuter benefits are funded by pre-tax employee dollars.