How Health Savings Accounts Work Hand-in-Hand With 125 Plans
The process of navigating employee benefits can be difficult, particularly when you try to manage cost savings while maintaining complete health insurance. Two effective tools that could greatly enhance the benefits of both the employer and employee include health care savings account as well as Section 125 Plans. If used in conjunction both offer an effective strategy that maximizes tax benefits and enhances employee wellbeing as well as easing administration. Understanding Health Savings Accounts The health savings account is a tax-advantaged savings account which allows people to set aside funds specifically for medical costs. The contributions into an HSA are pre-taxed which means they are tax-free income. This can provide substantial tax savings. In contrast to other accounts, the funds of the HSA can be carried over each year, which allows users to accumulate a significant fund to cover future expenses related to medical care. HR professionals the integration of health savings a...