Health Savings Accounts
An HSA is a tax-advantaged savings account subject to IRS regulations that can provide your employees and the members of their families with greater control over out-of-pocket medical expenses. The account can be funded by you, by your employees or partially funded by each of you. Funds deposited in an HSA can reduce taxes for you and your employees.
To offer your employees an HSA option, they must be covered by a high-deductible health insurance plan. This is a plan with a $1,250 (or higher) deductible for an individual; $2,500 (or higher) for a family. Some restrictions apply.
Annual deposits - whether from you, your employee or both-can be made up to the amount of the insurance plan deductible, with a 2014 ceiling of $3,300 for individuals, and $6,550 for families (ceiling amounts change yearly adjusted based on inflation). The accountholders, in this case, your employees, are accountable for how the funds in their HSAs are appropriated and could be subject to penalties if HSA funds are withdrawn and used for non-qualified expenditures.
BENEFITS TO YOU, THE EMPLOYER
High-deductible insurance plans are less expensive for you and your employees.
Funding with Pre-Tax Dollars means lower matching payroll taxes.
No Monitoring of Employee Health Expenditures - Devon Bank provides employees who have HSAs with personal monthly account summaries and year end tax reports.
We come to your place of business and open the HSAs for your employees.
We keep you regularly updated about changes in HSA regulations.
For more information on Health Savings Accounts log on to: www.irs.gov
To open a Devon Bank Health Savings Account click here, or call (773) 465-2500 for more details.
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