When it comes to paying for healthcare costs—both now and in the future—health savings accounts (HSAs) are among the most powerful tools available to consumers.
In preparation for HSA Day, we're counting the reasons HSAs are beneficial to both employers and employees.
We all know that enrollment can be complicated. But with the following tips, open enrollment communications with your employees can be simple and effective.
It’s no secret that health savings accounts (HSAs) are widely and often woefully misunderstood. This communication breakdown has manifested itself in misconceptions even among financial advisors—a cohort that many Americans entrust with helping them make critical decisions about their financial futures.
A HSA is a better retirement savings vehicle than a 401(k), but not all advisors are aware of this, nor that contributions to HSAs aren’t subject to federal income taxes; earnings from interest and investments are tax-free; and distributions from a HSA to pay for qualified medical expenses are tax-free.
“A real opportunity exists for financial advisors to play a major role in educating business owners about the benefits of health savings accounts for both their business and their employees,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute.
Have a HSA? Here is what you need to know as you prepare your 2018 Tax Return.
HSA contributions and distributions are non-taxable when used for qualified medical expenses (check out our eligibility list here). And as a HSA account holder you need to report all contributions and distributions made to your HSA when filing taxes.
There are two forms you will need to report your HSA transactions from last year: Forms 1099-SA and 5498-SA. If you are a 24HourFlex participant, both of these forms are available for download in your Consumer Portal under the “Tools & Support” tab.
HSA vs 401(k)
If your company has decided to offer a high deductible health plan, don’t worry, you are not alone. Recent studies show that an increasing number of employers have elected to offer high deductible health plans (HDHP) either to completely replace or be offered in conjunction with a more traditional Preferred Provider Organization (PPO) plan or Health Maintenance Organization (HMO) plan. When sponsoring a HDHP, employers typically offer their employees the ability to contribute to a Health Savings Account (HSA) to help offset the increased deductible associated with the HDHP. In 2017, 19 percent of all workers were enrolled in
It’s a new year and for those being first time users of 24HourFlex benefits (or for those who just need a refresher), it’s a good time to review where to find the tools and resources to easily manage your accounts.
On Thursday, November 15, 2018, the IRS released a statement that officially increased the annual contribution limit for Healthcare Flexible Spending Accounts (FSA) - both Medical FSAs and Limited Purpose FSAs - and the monthly contribution limits for Qualified Parking and Transportation Accounts for any plan years beginning in 2019. There was no change to the Dependent Care Flexible Spending Account.