Clarity Benefit Solutions Provides Four Ways HSA Companies Can Avoid HSA Misconceptions

NEW YORK, Dec. 15, 2017 /PRNewswire-iReach/ -- Clarity Benefit Solutions provides four ways HSA companies can avoid HSA misconceptions.

Health Savings Accounts (HSAs) are gaining momentum thanks to health care reform and retirement security. Even though HSAs offer a host of tax advantages, many have misconceptions regarding them. Here are some popular ones, and how HSA companies can avoid them.

  • HSAs are designed for older people. Anyone with a High Deductible Insurance Plan (HDHP) is eligible for an HSA account. HSA companies should emphasize that HSA contributions are not only tax-free, but also that earnings accumulate tax-free, and distributions are tax-free for any medical expenses that are qualified. Everyone—no matter what their age—should take advantage of this!
  • HSAs are the same as Flexible Spending Accounts (FSAs). In the healthcare world, there are so many acronyms it can be confusing to tell them apart. HSAs were designed to foster health care consumerism; while FSAs allow people to use pretax dollars to cover eligible health care expenses for themselves and their dependents. Plus, FSAs typically must be used before the end of the year. There is no "use-it-or-lose-it" policy with HSAs. They follow people from job to job, and into retirement. HSA companies must clearly outline the differences between these two accounts.
  • HSAs cannot be invested. First, HSAs offer a triple tax advantage: contributions are tax-deductible, interest earned is tax-free, and one can make tax-free withdrawals to cover qualified medical expenses. On top of that, the balance in an HSA account can grow by investing in it. Then, these balances can be used to invest in stocks, bonds, and mutual funds. HSA companies can educate employees on the added value that can be realized through having an HSA account.
  • HSAs can only be used to cover medical costs. This fact holds true for anyone under the age of 65, but people at or above the traditional retirement age can withdraw their HSA funds for any reason. However, the distributions are then taxable at ordinary income rates, the same as individual retirement account (IRA) or 401(k) distributions. HSA companies can promote the value of taking a different avenue to set aside money for retirement.

About Clarity Benefit Solutions: Clarity Benefit Solutions HSA administrators, provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, cclark@claritybenefitsolutions.com

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SOURCE Clarity Benefit Solutions



2018

Tags

Human Resource & Workforce Management, Health Care & Hospitals, Health Insurance



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