A health savings account can help with rising inflation — whether you're an employee or an employer.
I’m an employee.
Stressed about inflation? You’re not alone! Nearly half of Americans feel unable to cover a $400 emergency expense. And over half of today’s job seekers are prioritizing compensation and benefits in their search.Understanding the value of a health savings account (HSA) can help.
- If you participate in an HSA through your employer, your funds are withdrawn from your salary before they’re taxed at the federal (and usually the state) level — which means you’re keeping more of your salary
- You can collect interest in your HSA’s cash account
- You can invest your funds in your HSA’s investment account1
- When you purchase HSA eligible expenses with your HSA funds, these purchases aren’t taxed
- If your employer contributes to your HSA, you can save even more
Learn how to benefit from your HSA using First American Bank Health Account Services free tool, My HSA Planner.
I’m an employer, but I don’t offer an HSA.
Employee retention efforts have taken precedence during the Great Resignation — a trend that started during the pandemic and hasn’t stopped yet.According to Fortune, about 40% of employees “are considering quitting their jobs right now.” And the demand for labor is high, according to CNBC.
Luckily, an HSA can help your retention efforts — and your bottom line.
- You’ll save on lower premiums with HSA-eligible health plans
- Your contributions to employee accounts are tax-free2
- An HSA is one of the most popular benefits; offering one helps you keep up with employers who are competing for your talent
- You can make your HSA stand out with an employer contribution, innovative tech, and an enhanced investment experience1 that prioritizes the financial wellness of your employees
I’m an employer with an HSA offering.
By offering an HSA, you’re on the right track to helping your employees beat inflation with benefits. Congrats!But education is key to your employees actually using — and loving — their health savings account. Through email campaigns and open enrollment handouts, help your employees learn key concepts to maximize their account:
- Spend: Employees can save on hundreds of eligible healthcare expenses, like OTC meds, healthcare visits, eyeglasses, sunscreen, and more
- Save: With pre-tax contributions2, employer contributions, interest, and investment opportunities1, employees can build their balances to prepare for big expenses
- Invest: Like with a 401(k), employees can invest their HSA funds for faster growth1 — which is one reason an HSA rivals a 401(k) and IRA for retirement planning
- Retain: HSAs are employee-owned and all funds carry over
💡 Pro-tip: Share First American Bank Health Account Services free My HSA Planner with your employees.
If you don’t work with First American Bank Health Account Services for your employee benefits solution, you should. We offer a suite of tax-advantaged health benefit accounts including Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA), and Commuter Programs, such as parking and transit (QTA). The suite of health savings and benefits accounts allows you to offer flexibility to your benefits package and provide cost- and tax-saving resources to your employees. To learn more about how First American Bank's Health Account Services program can add value to your current benefit offering, please contact us at (847) 586-2239 or email [email protected].
