HEALTH SAVINGS ACCOUNTS:
SECURITY FOR NOW AND LATER
What is an HSA? As more and more employers make the switch to a High-Deductible Health Plan (HDHP), the Health Savings Account (HSA) continues to rise in popularity. It's an account that puts employees in control, allowing them to save on healthcare expenses and build a nest egg for retirement, much like a 401(k).
They offer a triple-tax advantage: Contributions are tax-free, earnings are tax-free and withdrawals for eligible expenses are tax-free. In addition to the extraordinary savings potential, Health Savings Accounts offer investment capabilities to help accountholders truly maximize the account's potential. The best part? The portability of the account means its balance continues to grow year after year and travels with the accountholder, even in the event of a career change.
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ALL ABOUT HEALTH SAVINGS ACCOUNTS
Employee enrolls in an HDHP and a Health Savings Account
Employee contributes pre-tax payroll deductions or online contributions
Employee spends, saves or invests account dollars
Account balance grows for when it's needed most
The IRS provides inflation-adjusted contribution limits each year.
The most recent HSA contribution limits are:
| 2019 | 2020 | |
|---|---|---|
| Individual Contribution Limit | $3,500 | $3,550 |
| Family Contribution Limit | $7,000 | $7,100 |
| Catch-Up Contribution Limit (age 55+) | $1,000 | $1,000 |
For employees who already have an account, we make transferring easy.
THE DISCOVERY BENEFITS DIFFERENCE
One card, one online account and one mobile app for all benefits
Low investment threshold and an integrated investment account
A portable solution that increases flexibility
HSA Advance, which lets participants tap into a ready reserve of funds before they've built a balance
Employee education catered to spenders, savers and investors
