Health Savings Account (HSA)
If your employees are covered by a high-deductible health plan (HDHP), you can offer them an employer-sponsored HSA. Employees use this tax-advantaged savings account to cover qualified medical expenses – from co-payments at the doctor’s office to pharmacy bills, dental care, vision care and more.
How HSAs work
The HSA works in combination with an HDHP and is funded by pre-tax contributions by the employee. Employers and other third parties can also contribute to the account. The employee determines the amount of money that is withheld each paycheck before payroll taxes are deducted. When an employee incurs a qualified medical expense, they can pay using a free BSNB HSA debit card.
Enhance your benefits programs – Add depth and flexibility to your employee health benefits and retirement plans by offering an HSA.
Tax advantages – As employees contribute pre-tax dollars to their HSAs, you may be able to reduce FICA and FUTA payroll taxes. Consult with your company’s tax and legal advisors.
Easy to administer – Employees control their own accounts, so administration is easy.
State of the art – Provide employees with web-based, fully integrated portals offering 24/7/365 self-service access to account information. A free downloadable app offers additional convenience.
Employee-owned – Funds in an HSA belong to the employee, even if they change jobs. Furthermore, if you no longer offer an HDHP, the employee continues to have access to any remaining HSA funds for qualified medical expenses.
Tax advantages – HSA contributions may be tax-deductible on your employees’ federal income taxes. However, employer contributions and pre-tax contributions that an employee makes, do not qualify*.
Funds carry over year to year – Any unused HSA funds remain in the account and continue to accrue interest until the employee needs them.
Investment opportunities – Once an HSA reaches a threshold designated by the employee (typically $1,500), they have the option of investing in mutual funds**.
Information readily available – Employees enjoy secure 24-hour access to their HSA online or via a downloadable free mobile app.
Easy to make payments – A free BSNB HSA debit card makes it convenient to pay for qualified medical expenses.
*Consult your tax advisor regarding your specific situation.
**Mutual fund offerings are provided by HealthcareBank, which is a registered broker-dealer and member FINRA/SIPC. HealthcareBank is not an affiliate of Ballston Spa National Bank. Investments in mutual funds are not FDIC insured, are not bank issued or guaranteed, and may lose value. The bank acts solely as custodian with any mutual funds being offered and sold through a registered broker-dealer by prospectus only. Past performance of investments is no indication or assurance of future performance. As with all investments, mutual funds involve risk. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Read the prospectus carefully before you invest. Some funds have a redemption fee under certain circumstances.