ADVANTAGES FOR YOU AND YOUR TEAM
HEALTH SAVINGS ACCOUNT
As an employer, a properly designed plan that integrates an HSA and employer contributions can create a win-win situation for both you and your team
Health Savings Account
SouthStar Bank HSA Details:
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Advantages for you and your team
If you’re considering offering a high-deductible health plan (HDHP), know the benefits of an HSA. HSA accounts provide employees with an additional avenue for retirement planning as well as a safety net for day-to-day medical expenses. With the lower monthly premiums of a HDHP, employees can save funds for when they are needed most.
The money in an HSA account rolls over year after year, and employees can take the account with them when they move on. Individuals can contribute to HSA until enrolled in Medicare, even if unemployed or self-employed. As long as they use the money for qualifying health expenses, it remains tax-free. There is no ‘use it or lose it’ penalty that is seen with a flex-spending account. When candidates explore new employment benefits programs, the option of an HSA is often seen as a competitive advantage.
Employers will also see advantages as there is often lower cost associated with offering HDHP for employees. Plus, contributions can provide tax benefits by reducing your Federal Insurance Contributions Act (FICA) or payroll tax liability. These tax benefits are notable to large employers as well as independent contractors and small business owners.
Frequently Asked Questions
As of 2021, employees can contribute up to $3600 per individual or up to $7200 per family, or $4600 per individual over the age of 55. Must have HDHP to make eligible contributions.
Contributions can be set to automatically withdrawal from employee paychecks if they choose.
Yes, employers can contribute to an HSA. These contributions can be set to automatically deposit from a SouthStar Bank Commercial Checking Account. Employer contributions will count toward the individual or family maximum contribution for the year.
Employees can easily transfer funds from other HSAs into their new SouthStar Bank HSA. Or, they can utilize existing funds until they are exhausted before closing their old account.
1 For more details on qualified medical expenses, please visit IRS.gov