What is a Health Savings Account?
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers who are enrolled in a High Deductible Health Plan (HDHP). Employers and employees can contribute to an HSA tax free, earnings on investments within the HSA are tax free and withdrawals from the account to pay for eligible expenses are tax free. Each year unused funds aremaining in the account gain interest or earnings tax free and continue to be available for future use. Once an individual reaches age 65, distributions can be for any reason - they are not limited to eligible expenses.
What are the HSA Limits?
Contribution Limits:
Annual Deductibles:
Out-of-Pocket Maximums
How Can FlexChecks Assist with your HSA?
FlexChecks can assist with your Health Savings Account in three ways:
1. FlexChecks can create or modify your Section 125 plan documents to include an HSA component. This allows employee contributions to be deducted from pay on a pre-tax basis saving employees from 22-40% on every dollar contributed to the plan, AND employers save 7.65% on employee contributions by reducing the FICA tax matching.
2. FlexChecks has partnered with HSA Bank to offer administration of your employee deposits to their account. HSA Bank provides banking convenience to employees while FlexChecks provides management of the funds by providing:
3. FlexChecks can manage reporting of employee and employer HSA contributions on your employee W-2's as required by the IRS.