Health Savings Account
Lower Your Costs and Improve Employee Benefits
Health Savings Accounts (HSAs) were created by Congress to allow individuals to pay for health expenses on a tax-free basis. If your company offers, or is considering offering a High Deductible Health Plan (HDHP)*, check out the advantages of a Newtown Savings Bank HSA. Offering Health Savings Accounts (HSAs) as part of your employee benefits package can reduce your overall costs while lowering employees’ healthcare costs as well.
Business Advantages
Lower premiums. An HSA combined with a High Deductible Health Plan (HDHP) can work for you and your employees. The HDHP has a lower premium, while the HSA pays for deductibles on a tax-free basis.
Less administration. An HSA is different than any other healthcare financing option you might offer. You decide how much, if any, you would like to fund. Once the account is established, the employee is responsible for managing their account. This eliminates your record-keeping requirements for the IRS.
Tax advantages.** Contributions made by you, the employer, are excludable from company gross income, not subject to income tax withholding and are not subject to other employment taxes.
Better employee relations. Offering HDHP plans with HSAs can make health coverage more affordable for employees.
Employee Advantages
Tax benefits.** Employee contributions are tax-deductible and payments for medical expenses are tax-free.
Savings potential. HSA funds can remain tax-deferred until the employee retires and uses the funds. Even after retirement, they can use these funds tax-free for qualified medical expenses.
Control. The employee determines when and how to use HSA funds.
Convenience for All
Newtown Savings Bank provides Health Savings Accounts as another service to our valued business customers and your employees.
Contact your business customer representative to learn more about this valuable service.
To visit our HSA service center, click here.
*A High Deductible Health Plan (HDHP) is an insurance policy with a high deductible and usually a lower premium. It can be combined with a Health Savings Account to pay expenses toward the deductible with tax-free dollars.
**Consult your tax advisor for tax implications.