Health Savings Account (HSA)

HSAs are used to save money for future medical expenses, work like a personal bank account, allow tax-free contributions, and roll over unused dollars.

Health Savings Accounts (HSAs) complement High Deductible Health Plans (HDHPs). They work like a personal bank account, giving you the opportunity to take money from your paycheck before it is taxed, and use it to pay for healthcare expenses, prescriptions, over-the-counter health products, and more. An HSA stays with you even when you change jobs and can also help you save for healthcare expenses during retirement.

What are the Advantages of a Health Savings Account?

The HSA offers you triple tax advantages by allowing you to contribute to the account tax free, any interest or earnings grow tax free, and you can take distributions from the account tax free when you use the funds for eligible expenses.

Chard Snyder offers HSA Advantage™ accounts through employers as a great way to set aside tax-free money for medical, pharmacy, dental and vision expenses not covered by your insurance plan.

HSA Advantage offers you an opportunity to invest your account. Once you have reached a certain balance in your HSA you can set up your investments and have funds automatically sweep into the investment portion of your account.  

Add Up Your Savings

The benefits of an HSA vary based on the unique financial goals and lifestyles of each person. My HSA Planner makes HSA education and decision-making simple and personalized. This tool is designed to help those who don’t have an HSA to learn more, and those who already have an HSA account understand how to maximize its benefits. 

Access My HSA Planner here

How are HSAs good for participants?

If you’re enrolled in an HDHP and have the opportunity to participate in an HSA through your employer’s benefits package, be sure to take advantage of this great perk. There are countless reasons to participate, but here are some major ones:

  • Save three ways: Contribute pre-tax funds to your HSA, withdraw them for eligible expenses without paying tax, and earn tax-free interest on the balance you accumulate.
  • The “use it or lose it” rule doesn’t apply: Unlike a Flexible Spending Account (FSA), the money that remains in your HSA at the end of the year gets carried over. So you never have to worry about losing unused funds!
  • Save on qualified expenses: Use your pre-tax HSA funds to save money on eligible medical, dental, vision, and pharmacy expenses.
  • Build savings for retirement: HSA funds aren't just for current healthcare expenses. Your HSA can also serve as a retirement fund similar to a 401(k). With the ability to invest HSA dollars in mutual fund options after you reach a certain balance threshold set by your employer, you can grow your HSA balance to use in retirement.

Why should employers include an HSA in their benefit plans?

If you’re responsible for building the benefits package at your company, the HSA should definitely make the cut. Here’s why:

  • Offer more affordable coverage to your employees: Pair an HSA with a high-deductible health plan (HDHP). HDHP premiums are typically lower than other traditional plans, which offers cost savings for you and your employees.
  • Decrease your payroll taxes: Both employer and employee contributions to an HSA are tax deductible, which can decrease your FICA and FUTA payroll taxes. To give an extra incentive for employees, you may consider contributing to your employees' accounts, and because they are tax deductible, it won't break the bank!
  • Enhance your benefits package with a more robust offering: To recruit and retain a talented workforce, your benefits need to stand out!  An HSA is a great perk that employees will appreciate now and in retirement.