Advantages of HSA investments that mirror a 401(k) plan
What benefits could an employer and their staff realize if Health Savings Account (HSA) and 401(k) investments were aligned? At Alerus we help advisors, brokers, and employers educate employees on the benefits of having and funding a Health Savings Account.
Typically, HSA education occurs at open enrollment. With all the topics that need to be covered, the time allocated to educate employees on the benefit of building their balances for retirement can be scarce. Mirroring the HSA and 401(k) investments allows advisors to include HSAs in conversations about retirement, providing the opportunity to educate participants on the value of utilizing an HSA.
A HOLISTIC VIEW
Living expenses in retirement can include Medicare premiums, out-of-pocket medical expenses, and dental, vision, and possibly hearing expenses. All of these things are covered by the HSA without taxation. A huge advantage over a retirement plan.
INCENTIVE TO BUILD BALANCES
Emphasizing the use of HSAs for Medicare expenses and premiums, and highlighting strategies to build HSA balances into retirement can further underscore the triple tax advantages of an HSA and its value into retirement.
- Viewing an HSA as an account that has value into retirement motivates accountholders to build their balances for the future.
- Provides a greater degree of confidence to the plan sponsor, knowing those funds have been vetted.