Health Savings Account (HSA)
Health Savings Account (HSA) are becoming a popular benefit offering for employers with high-deductible health plans (HDHP). HSAs allow employees to pay for medical, vision and dental costs with money from a tax-free fund. Employees can contribute to an HSA with pre-tax dollars under a Section 125 plan.
Similar to an IRA account, HSAs belong to the individual, not the employer, and are portable. Funds in an HSA earn interest over time and carry over from year to year.
The IRS defines what constitutes a high-deductible health plan along with who can have an HSA and which expenses can be covered.
HSA funds must be held by a qualified trustee such as a bank. That’s why we rely on Exante Bank, member FDIC, to serve as our HSA custodian. Exante Bank is an industry leader focused solely on health care banking and the administration of HSAs.
|