Health Savings Accounts (HSA)
The Smarter, Tax-Advantaged Way to Save and Pay for Healthcare
What Is an HSA?
A Health Savings Account (HSA) is a personal savings account designed to help employees pay for qualified medical expenses — today or in the future — with powerful tax advantages.
HSAs must be paired with a High Deductible Health Plan (HDHP) that meets federal requirements under Section 223 of the Internal Revenue Code.
Employees and employers can both contribute.
The account is owned by the employee, making it one of the most flexible and portable benefits available.
How It Works
Simple. Transparent. Built Around You.
Enroll in a Qualified HDHP
Employees participate in a compliant health plan that makes them eligible for HSA contributions.
Contribute Pre-Tax Funds
Both employers and employees can contribute, up to the annual IRS limits. Funds grow tax-free through interest or investment earnings.
Spend or Save
Employees can use their HSA for qualified 213(d) expenses (doctor visits, prescriptions, dental, vision, etc.) — or save the funds for future healthcare costs, including retirement.
Benefits for Employers
- Tax Savings: Contributions are not subject to payroll taxes.
- Cost Control: HDHPs typically have lower premiums than traditional plans.
- Retention & Engagement: HSAs promote financial security and are highly valued by employees.
- Flexibility: Combine with ICHRA or voluntary benefits for a comprehensive, compliant benefits strategy.
Benefits for Employees
- Triple Tax Advantage: Contributions, growth, and qualified withdrawals are all tax-free.
- Portability: The account belongs entirely to the employee — it moves with them if they change jobs or retire.
- Long-Term Value: Balances roll over year to year and can be invested for future healthcare or retirement expenses.
- Empowerment: HSAs encourage smarter, more intentional healthcare decisions.
2025 Contribution Limits
(As established by the IRS for tax year 2025. Limits are updated annually.)
Individual Coverage
$4,300
Family Coverage
$8,550
Why HSAs Matter
HSAs help employers control healthcare costs while giving employees ownership and confidence in their healthcare decisions.
When paired with an ICHRA, HSAs form a powerful, compliant strategy that balances flexibility, savings, and employee satisfaction.
Employer FAQs
No. Employers may choose to contribute, match employee contributions, or offer the HSA without funding. Contributions are optional but can encourage participation.
HSAs benefit both sides — employers enjoy lower payroll taxes and reduced plan costs, while employees gain tax-free savings and financial stability.
It’s a cost-effective way to enhance recruitment, retention, and overall benefits satisfaction.
Ready to Empower Your Team With Smarter Health Benefits?
Let’s design an HSA strategy that complements your ICHRA and helps your employees build long-term financial security.
Compliance Reference: HSAs are governed under Section 223 of the Internal Revenue Code and must be paired with a qualified High Deductible Health Plan (HDHP). Always consult your tax or legal advisor for specific eligibility and contribution details.