Health Savings Accounts
Affordable Healthcare Options for Businesses
Control over health care costs
Helps you attract and retain good employees
Provide your employees with a solution that can help them manage their healthcare costs. A Health Savings Account (HSA) is a tax-advantaged account thatís used to pay for healthcare expenses. Itís a valuable benefit your company can offer as part of its benefits package. Learn more about this business banking solution and how it can benefit you and your employees by reading the overview below.
As a business owner, if your employees are covered by an HSA-eligible health insurance plan you can offer them an employer-sponsored Health Savings Account (HSA) and compete with larger companies to attract and retain good employees. When you turn to The Bank of Missouri to offer HSAs for your employees, you give employees a way to earn tax-free dollars on account contributions made by you, your employees, and any other person on their behalf. These contributions help your employees pay for qualified medical expenses on a tax-free basis.
Some Great Reasons to Offer a Health Savings Account
- Share the cost of healthcare benefits with your employees in a way that benefits you and them.
- Avoid the timely administration of benefits. Employees self-administer their HSA, so there is minimal administration for your business.
- Contribute in a lump sum or any frequency you choose to your employee's HSA; there are no minimum contribution requirements.
- Enhance your benefits package by adding healthcare benefits, which will attract and retain your employees.
- By providing employees an easy way to apply for a tax-advantaged HSA The Bank of Missouri you can help them gain more control over how their health care dollars are spent. Coupled with an HSA-eligible health insurance plan, this health care savings option from The Bank of Missouri may help you attract and retain valued employees.
- Since unused HSA funds roll over from year to year, you are providing an incentive for employees to use health care services wisely, which may save you money and help to lower your insurance premiums.
- The contributions your company may choose to make to employees' HSA accounts are generally tax-deductible. (Consult with your company's tax and legal advisors.)
- If you offer a qualifying cafeteria plan2, you may allow employees to make pre-tax contributions to their HSAs through payroll deduction. By doing so, you may also be able to reduce your company's overall FICA liability.
How your employees can save
- HSA contributions may be tax-deductible on your employees' federal income tax return, and, in most cases, on their state income tax return. (Employer contributions and employees' pre-tax contributions through payroll deduction do not qualify. Your employees should consult with their personal tax and legal advisors.)
- Employees can earn tax-free interest on HSA contributions and use that money to pay for qualified medical expenses.
- Withdrawals from the HSA are tax free if used for qualified medical expenses
- Unlike Flexible Spending Accounts, HSAs have no "use it or lose it" requirement and can also stay with employees when they change jobs or retire. 3
- If you offer a qualifying cafeteria plan,2 you may allow employees to make pre-tax contributions to their HSAs through payroll deduction. By doing so, your employees' taxable salary is reduced by their pre-tax contributions.
Employees are in control
- When your employees open an account, they're issued a Bank of Missouri HSA Visa® debit card that makes it easy for them to pay for qualified medical expenses.
- They have online access to account transactions, so keeping tabs on their medical spending is easy.
How employees can use their savings
- Standard medical services such as office visits and annual medical physicals.
- Prescriptions, some over-the-counter medicines, and health care products.
- Preventive and restorative dental care, as well as orthodontia for children and adults.
- Eyeglasses, contact lenses, and laser eye surgery.
The Bank of Missouri makes available Business Health Savings Account ("HSA") as custodian only. The HSA is intended to qualify as a Health Savings Account as set forth in Internal Revenue Code Section 223. However, you are solely responsible for ensuring that you satisfy the HSA eligibility requirements set forth in Section 223. If you establish an HSA and you are not otherwise eligible, you will be subject to adverse tax consequences. We recommend that you contact qualified tax or legal counsel before establishing an HSA.