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The unexpected perks of an HSA: 3 things HR needs to tell employees
- Health savings accounts (HSAs) are a popular employee benefit, present in about 22% of employee benefit plans, but many individuals are missing out on maximizing their HSA benefits.
- More than 7 million HSAs are unfunded, and lack of understanding about HSAs is a key reason behind low enrollment and utilization.
- HR professionals can educate employees about the perks of HSAs to enhance utilization and satisfaction.
- Key steps HR can take include keeping HSA eligibility in employees' focus, educating them on the savings potential, and taking a population approach to HSA education.
- Employees can save an estimated $1,600 annually on pre-tax HSA-eligible items, offering significant potential savings.
- Educating employees on eligible HSA products like sun-protection items, baby health products, and more can help them make the most of their accounts.
- HSAs provide triple tax savings: Contributions reduce taxable income, funds grow tax-free, and qualified withdrawals are not taxed, benefiting retirement savings.
- A future value calculator and account management tools can help employees assess future needs and utilize HSAs for retirement healthcare expenses.
- Promoting HSAs to all employees, regardless of financial status, and providing tools to track expenses can enhance HSA utilization.
- Helping employees understand the benefits of HSAs can lead to improved health and financial stability, as well as increased benefits utilization.
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