Health Savings Account (HSA)
Whether you're a sole proprietor with no employees or a corporate entity offering healthcare benefits to workers, you'll want to consider the advantages of a Health Savings Account. HSAs are definitely growing in popularity. Due to an IRS requirement, you'll need to have a qualified High Deductible Health Plan in place before you can take advantage of this account.
For the Individual Business Owner
(with no employee healthcare needs):
HSAs are a good way to take control of your own individual healthcare spending. Its tax saving features makes it an attractive choice.
- Contributions into the account are tax-deductible provided you follow IRS guidelines*
- Interest earned on an HSA is tax-free
- Withdrawals for qualified medical expenses are tax-exempt
- Unlike some other healthcare accounts, you'll never lose your funds if you don't use them.
- With an HSA, your funds are rolled over and kept in your account from year to year.
- Portability allows you to keep your funds even if you change health plans. The account belongs to you.
- Tiered interest rates earn you higher rates for higher balances. As your balance grows, you'll earn more money on your HSA.
- Easy access to your funds by MasterCard ATM/Debit Card**, electronic transfer or in-bank withdrawals
- Check with a Minnwest representative who can update you on the current federal limits of annual contributions to an HSA
- $100 to open account with automatic deposit available
*Consult your tax advisor or insurance provider regarding health plan eligibility and tax advice.
For the Business who offers Healthcare Benefits to Employees:
We've been told by business owners like you and their employees that Minnwest's HSA is one of the best around! If you are offering a High Deductible Health Plan (HDHP), you must consider Minnwest's HSA.
- Reduce your healthcare spending because
- HDHP may offer reduced premiums for your business
- You share the cost of healthcare with your employees in a plan that benefits you and them . . . a combination HDHP and Minnwest HSA
- Puts healthcare spending funds into your employees' hands
- Lets employee decide how to spend the funds on qualified healthcare expenses
- Minimal employer administration of HSA since employee handles their own HSA
- Enhances your benefits package by offering employees portability, flexibility and even tax savings with HSAs
- You can allow employees to fully fund their HSAs or you can choose to make an employer contribution to it
- Potential tax savings on your Social Security and Medicare taxes by offering pretax payroll HSA deduction for employees**
- Ask a Minnwest business banker for all the details
**Depends on business structure. Employers should consult with tax advisor regarding their situation.