What is a Health Savings Account? ( HSA – good idea?)

What is a Health Savings Account? ( HSA – good idea?)

Health Savings Accounts, which let you save for current and future health care expenses on a tax-free basis, turned 10 years old this year.  Yet a decade after they were introduced in 2004, relatively few Americans take advantage of them.  Only 20 percent of those who are eligible have an HSA account, according to the Washington-based Employee Benefits Research Institute (EBRI). Those who don’t have an HSA are often missing out on some key financial perks — especially older Americans, who can sock away an extra $1,000 or more in “catch up” savings to help plan for medical costs in retirement.

Here are three ways an HSA can help you have a more secure retirement:

It lowers your taxes

For those 50 and older, out-of-pocket health care expenses are likely to rise as you age. And here’s where the HSA offers tremendous savings, compliments of Uncle Sam.

From a tax standpoint, an HSA is the best thing out there because it has a triple tax advantage, the money goes in tax free, it builds up tax free and it comes out tax free if withdrawn for qualified medical expenses.

Potential financial benefits from your employer

An HSA can also lead to some nice on-the-job perks.

Employers are continuing to add HSA plans and wellness incentives. In some cases, employers are tying the two benefits together.

For example, assume you get your biometrics checked. With that screening, you might get an assessment of your BMI (Body Mass Index), or you might have your blood pressure or cholesterol examined. In exchange for the employee taking those healthy steps, which can often prevent further medical problems down the road, your employer may increase its contribution to an HSA or lower your health care premiums.

It can pad your retirement nest egg

Numerous studies show that boomers aren’t saving enough for retirement. The HSA offers a way to help there, too.

You might not be able to put funds in a so-called Roth IRA if you’re making too much money. But with the HSA, this is a retirement benefit without income limits. That’s a really big deal.

See if you qualify

There are four qualifying factors involved with getting an HSA: You have to have a high deductible health plan. You can’t be enrolled in Medicare. You can’t be anyone’s dependent. And you can’t have other health coverage.

As you progress in life, insurance probably will become more onerous on the individual and you’ll have more out-of-pocket health care costs.

How can the Washington Hospitality Association help?

Your membership allows you to explore a complete raft of Healthcare Solutions that are aimed at every possible position and situation encountered by Hospitality organizations.

Need an individual plan?  Washington Hospitality has options.  Large employer looking for comprehensive companywide plans?  Washington Hospitality has options.  Do you need additional standalone products?  Employee Assistance Programs (EAP)?  Washington Hospitality has options!

So, an HSA is a GREAT idea for many businesses to offer to their employees.  Do you, can you, offer it as part of your benefits packages to your employees? To find out call the below number and talk with our experts.  These are people who know the ins-and-outs of the health care ecosystem, know hospitality, and are passionate about connecting the two in a way that helps you succeed.

This is a call to action. Call the number below or click here.  Call your broker and ask them to call for you. Don’t miss out on a competitive program, available to you because you are a member.

After that, ask all the questions you need, and find out if we can improve your current benefit program offerings and costs (we are pretty confident we can).

Then, call us a year from now, and tell us how happy you are with your new program.

We always love to hear that.

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