5 Ways to Maximize Your HSA
October 13, 2023
1. The more that employees contribute to HSAs, the more taxes they save.
HSAs are one of the most tax-advantaged accounts, and the money is theirs forever.
- Immediate tax-exempt contributions.
- Federal tax-free investment earnings and dividends.
- Eligible health expenses are tax-exempt.
2. HSAs have more tax advantages than 401ks.
Withdrawals for health expenses are tax-free, whether they occur before or after 65.
- HSA contributions are exempt from payroll taxes. 401ks are subject to Social Security and Medicare taxes.
- Withdrawals from HSAs are much more flexible than 401ks while still retaining tax advantages, regardless of age.
3. HSA eligible items are being overlooked.
HSAs cover a variety of expenses that are underutilized:
- Over 150K Over-The-Counter (OTC) products like pain relievers, feminine hygiene, contact solution, etc.
- Acupuncture, Chiropractic Care, and Orthodontists.
- Transportation expenses to/from the doctor and store.
4. Saving is possible even with a $0 HSA balance.
Even with an empty HSA, employees can monitor expenses and contribute funds later to cover previous costs.
- The IRS requires HSA accounts be open before the expense, not funded.
- Monitoring health-related costs and making contributions afterward is legitimate and a financial advantage. InComm’s HSA makes this easy, with automatic tracking for linked accounts.
5. Is your HSA provider making it simple to utilize for employees?
- Are they automating expenses and tracking receipts?
- Can they auto-identify expenses like travel and OTC items?
- Do they help employees save on taxes even with a $0 balance?
Banking services are provided by Coastal Community Bank, member FDIC. The InComm HSA benefits card is issued by Coastal Community Bank pursuant to a license from Visa U.S.A. Inc. InComm spending accounts are FDIC insured up to $250,000 per depositor through Coastal Community Bank, Member FDIC.
Investment products are not insured by Coastal Community Bank, the FDIC, or any Federal Government Agency and may lose value. Privacy notice for Coastal Community Bank can be found here.
Maximizing Tax Savings with HSAs
Your Money, Your Advantage
