Are There IRS Tax Benefits With a Health Savings Account?
Your HSA Account will allow your employees to:
- Pay for their current healthcare expenses
- Save for
future qualifying medical and retiree healthcare expenses
And they’ll be able to do both on a tax-advantaged basis,
similar in many ways to a 401(k) or a medically themed IRA.
Plus the money is theirs to keep. Unused funds will carry over
indefinitely during their lifetime, even traveling with them
if they change jobs or health insurance plans.
Enjoy the Tax Benefits of Health Savings Accounts
Though primarily advertised as a way to gain more control over
their healthcare, HSAs are essentially tax benefit plans specifically
designed to allow your employees to:
Lower the burden of their federal income taxes. It won’t
matter how the income was earned, the cash deposited into
their Health Savings Accounts will be a 100% write-off against
their
adjusted gross income.
Lower their taxable gross income, allowing
them to qualify for additional tax breaks tied to overall income.
For example,
families are no longer eligible to receive a $1,000.00 child tax credit
once their gross income exceeds $110,000.00.
Lower their state
income tax rates. Federal adjusted gross income level is also
a starting point for most state-based tax assessments,
so a savings on their state income tax bill will be possible
for your employees as well.
Take advantage of tax-advantaged
growth rates. Just like funds deposited in an IRA,
the cash in your employee’s HSA
Account will grow tax free. They will have to pay taxes
if the cash is
withdrawn for expenses unrelated to healthcare.  |
