Health Savings Accounts
Your Business’ Cure to a Healthy Benefits Plan
As a business owner you know great employees are the key to your success so attracting and retaining top talent is a big priority. One of the best strategies for employee recruitment is a competitive benefits package that includes health insurance coverage and a high deductible health plan provides businesses an affordable option to offer employees. When a high deductible health plan is matched with an Health Savings Account (HSA), the two provide powerful protection.
Business owners and employees love Health Savings Accounts for the benefits and flexibility they provide. OlyFed makes it easy for business owners to set up employee accounts and to make regular contributions for the coverage and comfort employees want in today’s competitive job market. Even better, here at OlyFed we can set up accounts to help business owners save on payroll taxes, making HSA’s an even more attractive employee benefit.
We recently sat down with OlyFed’s Health Savings Professional to get the down-low on how medical expenses are made easier with a Health Savings Account. They shared answers to frequently asked questions about HSAs and how they can be the key to keeping your business and employees healthy with a high-deductible health plan.
Many Great Features & Benefits
|Account Information||Health Savings Account|
|Minimum Balance to Open|
|Minimum Balance to Open||$1|
|Monthly Service Fee|
|Monthly Service Fee||$0|
|HSA Visa Debit Card|
|HSA Visa Debit Card||Free|
|Confidential Document Shredding|
|Confidential Document Shredding||Free|
HSAs Benefit Everyone
Below you will find even more answers to many frequently asked HSA questions:
Why are HSAs growing in importance and popularity?
As healthcare costs continue to increase, so do insurance premiums making affordability more of a challenge for both employers and employees. As a result of these increasing costs, more people and organizations are turning to high-deductible health plans to control expenses.
One of the main features of those plans is the ability to put away dollars tax-free into a Health Savings Account for future medical expenses. Even better, employers are seeing the importance of HSA’s and many are contributing to their employees’ accounts as part of the benefits plan.
What makes OlyFed’s HSAs special?
When you open an HSA with OlyFed there is no monthly service fee, no minimum balance, free digital services (online and mobile banking), free checks, and a free HSA dedicated debit card all to help you better manage your account. Even better your account comes with the care, expertise and support of a personal banker who can help you get started with just a dollar.
How much can I contribute to my HSA each year?
This Year (Jan. 1-Dec. 31, 2023): Individuals with a high deductible health plan (deductibles no less than $1,500) can contribute up to $3,850 (up $200 from 2022) . An individual with family coverage under a qualifying high-deductible health plan (deductible no less than $3,000) can contribute up to $7,750 (up $450 from 2022).
Next Year (Jan. 1-Dec. 31, 2024): Individuals with a high deductible health plan (deductibles no less than $1,600) can contribute up to $4,150 (up $300 from 2023). An individual with family coverage under a qualifying high-deductible health plan (deductible no less than $3,200) can contribute up to $8,300 (up $550 from 2023).
Catch-Up Provision: Don’t forget, if you are age 55 or older, you can contribute an additional catch-up contribution of $1,000 per year.
How can I use the funds in my HSA?
Funds from your HSA account can be used for qualified medical expenses like medical procedures, hospital bills, prescription drugs, vision care, and dental treatments for yourself, spouse/partner and dependents.
It’s important to remember that what’s considered a qualified medical expense is always subject to change by the IRS so if you’re on the fence about an expense, make sure to check with them for the most up-to-date list.
What are the tax-benefits of an HSA?
HSAs are one of the most tax-efficient savings vehicles around. You can contribute pre-tax dollars, pay no taxes on your interest earnings and withdrawals for qualified medical expenses are tax-free whether they occur now or in retirement. Be sure to consult your tax-advisor for more details.
What happens to the money in my HSA if I don’t spend it?
Unlike most Flexible Spending Accounts (FSA’s), the money you contribute to your HSA is allowed to stay in your account year-to-year and earn interest tax-free. Even better, if you switch employers or retire your money stays with you. There are no “use it or lose it” rules with HSAs. Once you contribute funds, it’s your money to use, whenever its needed.
Keeping Your Wallet & Family Healthy
Our team of bankers are locals like you and we have the expertise and knowledge to help you and your family create a healthy financial future. One of our core values is a commitment to life-long learning, which is why we invest in financial education for both our customers and the community. In fact, we have a dedicated Health Savings Professional, Angelina Contreras-Duran, who is here to answer your HSA questions and get your account set up to meet your needs.