Health Savings Account (HSA)

Improve your company's benefits package and increase employee satisfaction and loyalty by offering a Health Savings Account.

An HSA is a flexible, tax-free way to save for future medical expenses. By establishing an HSA program at your company, you're opening the door to a host of benefits for you and your employees.

Offering an HSA, in conjunction with an high-deductible health plan (HDHP), can provide both your business and your employees with exceptional benefits:

Expanded Availability

Unlike Archer Medical Savings Accounts, Health Savings Accounts (HSAs) are available to everyone, not just the employees of small businesses and the self-employed.

Tax-Free Benefits

HSAs allow you and your employees to make contributions and earn interest tax-free. Plus, the distributions (the assets withdrawn) are also tax-free as long as they're used for qualified medical expenses.

Flexibility In Spending

The assets in an HSA can be used to pay for—or reimburse—qualified medical expenses, such as health insurance deductibles, copayments, and out-of-pocket expenses.

Year-To-Year Savings

You've heard the phrase, "use it or lose it." Well, an HSA isn't like that at all. HSA balances carry forward year after year, allowing you and your employees to budget for health expenses and build up savings to cover qualified medical expenses when the need arises.

Individual Ownership

An HSA is owned by each individual. So it's his or her responsibility to maintain, not the company's.

Contribution Options

As an added benefit to your employees, you can choose to make contributions to their HSAs.

The annual contribution limit is based on the type of HDHP coverage. For 2011, the limit is $3,050 for self-only coverage and $6,150 for family coverage. These limits are subject to annual cost-of-living adjustments (COLAs).

Individuals who are age 55 or older by the end of their taxable year and not enrolled in Medicare may make additional contributions up to $1,000 per year.

Contact a bank representative about offering this account to your employees.